Premier Foods PLC (LON:PFD) has agreed to sell its stake in bread maker Hovis to private equity firm Endless LLP in a multimillion pound deal.
The FTSE 250 firm, which also owns the Mr Kipling and Bird’s Custard brands, said it has agreed to sell its 49% minority interest to Endless for proceeds of £37mln, in a move it said will strengthen its financial position as it looks to improve its leverage profile.
Meanwhile, US private equity firm The Gores Group, which owns the remaining 51% of Hovis, has also agreed to sell its stake to Endless.
Premier Foods initially owned all of Hovis after purchasing the 134-year old bakery brand in 2007, however, it sold the controlling stake to Gores Group in 2014 to form an Anglo-American joint venture.
The financial details of the overall transaction today were not disclosed.
Shares in Premier Foods rose 0.4% to 104p in early deals on Friday.