Hovis receives takeover offer from Italian firm Newlat Food
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Italian firm Newlat Food has made an offer to buy the maker of Hovis bread from its current owners Premier Foods and US investment firm Gores Group.
Newlat, which is the owner of Buitoni pasta, said this morning that the 134-year-old brand has a “great tradition and recognisability in the United Kingdom”.
The acquisition would accelerate the firm’s ambition to become “one of the most important operators in the food sector in Europe”, with significant market share in Italy, Germany and the UK.
Following the proposed deal, Milan-listed Newlat would achieve consolidated revenues of about €1bn, it said.
Hovis last week filed results for last year showing that it had increased its share of the UK bread market to 22 per cent, Sky News, which first reported Newlat’s intention to bid for the firm, said.
Sales this year have been boosted as customers stockpiled essentials during the coronavirus pandemic.
Endless. Epiris, and Aurelius Equity Opportunities are also reportedly in the race to buy Hovis.
Analysts predicted in June that Hovis could be sold for between £100m and £150m.
RW Baird, the investment bank, is advising on the sale.
Mr Kiplin owner Premier Foods is expected to use the sale process to offload its 49 per cent stake in the company.