Thu, 11 Jun 2020 | BUSINESS SALE
The Gores Group has begun a sales process to sell its 51 per cent controlling stake in bread business Hovis. The firm has reportedly hired bankers from investment outfit RW Baird to oversee an auction for the business, which it acquired a majority share in six years ago for around £30 million.
According to analysts, Hovis could fetch between £100 million and £150 million when it goes to auction, which would begin in autumn this year or later. Premier Foods, which controls the remaining 49 per cent, is also said to be supportive of the sale and would use it as an opportunity to sell its stake.
Hovis currently employs over 2,700 staff and its business is focused on bakery operations after it sold two flour mills in 2018. Hovis has seen its business boosted by the coronavirus lockdown, which has seen an increase in bread sales.
Reports indicate that the company would attract considerable interest from other food businesses, although a merger with another major UK food brand would likely raise regulatory issues.
Despite the recent boost in sales, something that has also benefitted the UK’s other major bread producers – Kingsmill and Warburton’s, Hovis has been impacted in recent years by a consumer shift towards gluten-free or bread-free diets.
However, it still commands an estimated 28 per cent market share in the UK and reported revenue of £335.9 million in the year ending December 31 2018, although it also recorded a 1.5 per cent fall in bread volumes as it faced competition from own-brand alternatives in supermarkets.
In its 2018 accounts, Hovis reported profit of £6.2 million. At the time, its fixed assets were valued at £113.3 million, its current assets at £89.2 million and its total assets less liabilities £106.9 million.
Find businesses for sale here.
If you are looking for an exit, we can help!
This is an exciting opportunity to acquire a well-established restaurant chain with a loyal customer base in the South-West of England, featuring unique branded menus and seven prime locations.
This licensed restaurant in the heart of Newcastle city centre offers a prime trading position with high footfall and impressive weekly turnover.
LEASEHOLD
This is a rare opportunity to acquire a well-established and reputable pizza restaurant located in a sought-after suburb of Newcastle.
LEASEHOLD
03
|
Sep
|
Car dealership group representing 16 brands acquired | BUSINESS SALE
Johnsons Cars Limited, a car dealership group that represent...
03
|
Sep
|
Pair of family-run Devon care homes sold | COMMERCIAL PROPERTY
Two family-run care homes in Paignton, Torbay have been sold...
03
|
Sep
|
Dains Group expands in East Midlands with latest acquisition | BUSINESS SALE
Dains Group, a private equity-backed accountancy and advisor...
21
|
Aug
|
Premier Foods acquires Merchant Gourmet in £48m deal | BUSINESS SALE
Premier Foods has agreed a £48 million deal to acquire...
05
|
Nov
|
Food giant confirms talks over Hovis sale | BUSINESS SALE
Premier Foods has confirmed that it is engaged in ongoing ta...
25
|
Jul
|
Sale of Premier Foods bread section 'still a possibility' | BUSINESS SALE
A sale of Premier Foods' bread companies is still on th...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.