Gores Group completes acquisition of controlling stake in Hovis

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hovisPrivate equity firm The Gores Group has completed the acquisition of a 51 per cent stake in UK foods group Premier Foods’ baking business Hovis.

Gores has agreed to pay £30m for the stake, valuing Hovis at £87.5m including £28.7m of working capital that will be retained by Premier Foods.

Premier and Gores will also provide £45m of loan notes to the company and invest a total £200m in the next five years to improve Hovis’ operational infrastructure.

In 2013 Hovis reported an EBITDA of £21.9m on sales of £654.6m.

In the meantime, Gores is reportedly looking to sell Sage Automotive Interiors after two years of ownership.

Sage is expected to be valued at seven times its current EBITDA of $42m, according to a PeHUB report.

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