Premier Foods, the British food giant known for brands like Kingsmill and Mr Kipling, has finalised a deal to sell its minority stake in Hovis, the iconic bread maker. The agreement sees private equity firm Endless LLP acquiring Premier's 49% shareholding in Hovis, effectively ending its involvement in the joint venture.
A Strategic Move for Premier Foods
The sale forms part of Premier Foods' broader strategy to streamline its operations and focus on its core brands. The company had previously signalled its intention to exit the Hovis partnership, which began in 2014 when Premier sold a controlling 51% stake to Endless.
Alex Whitehouse, CEO of Premier Foods, commented: "This transaction represents another step forward in our strategy to simplify the business and concentrate on our market-leading brands where we see the greatest potential for growth."
What This Means for Hovis
For Hovis, the deal brings full ownership under Endless LLP, which has overseen the brand's operations since taking majority control eight years ago. During this period, Hovis has implemented significant modernisation across its bakeries and distribution network.
The bread maker has maintained its position as one of Britain's best-known bakery brands, competing with rivals like Warburtons and supermarket own-label products in the £3.6 billion UK bread market.
Industry Reaction and Future Prospects
Industry analysts view the transaction as a positive move for both parties. Premier Foods can now redirect resources towards its power brands, while Hovis gains simplified ownership structure under Endless.
The UK bakery sector continues to face challenges including rising ingredient costs and changing consumer habits, but established brands like Hovis remain important players in the market.
