The deal valued the company at £87.5m including £28.7m of working capital that will be retained by Premier Foods.
In addition, Premier and Gores agreed to provide £45m of loan notes to the company.
The joint venture plans to invest a total £200m in the business over the next five years to improve its operational infrastructure.
Hovis posted an EBITDA of £21.9m on sales of £654.6m last year.
Gores managing director Fernando Goni said, “We believe there is significant untapped potential in such a well-loved, household name and are confident in the abilities of the talented management team to drive value for all stakeholders.
“The Gores Group has a rich history of working alongside corporate partners to unlock latent value in divisions that require operational and commercial improvement and, as such, we are convinced that Hovis offers a perfect fit for our unique capabilities.”
In the meantime, Gores Group and Siemens joint venture Unify is reportedly looking to buy the telecommunications equipment and services business of Alcatel-Lucent.
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