Premier launches Hovis partnership with Gores Group
Premier Food kicked off 2014 with news of a £87.5M joint venture with the US-based Gores Group to run its Hovis business.
The deal resulted in Premier Foods retaining a 49% stake in the troubled bread and flour business.
Premier Foods claimed the deal would strengthen its position in the ambient grocery market and help it to secure investment.
“We can now focus our attention and resources on developing our category leading grocery brands,” said the firm’s ceo Gavin Darby.
“A joint venture arrangement also means we will share in the future gains from this investment as the business continues its return to profitable growth, helping us maximise value creation. Both parties are excited by the opportunities this transaction brings.”
Bob Spooner was appointed as ceo of Hovis following the completion of the deal.