Private equity firm to put in the dough for bread maker

Private-equity firm Endless LLP is reportedly close to securing a takeover of Hovis, returning the bread-maker to British ownership.

Sky News has reported that the Leeds-headquartered business is in advanced talks to buy the firm, with its source believing a deal could be confirmed this week.

The story comes after Italian food producer Newlat Food, issued a statement to the Borsia Italiana (Milan stock exchange) that it had pulled out of the race to acquire the business stating it “does not intend to proceed further in a competitive tender for the purchase” of the 134 year old business unless it could have “an exclusive negotiation period”.

The price for acquiring this historic brand, which traces its routes back to 1886 in Macclesfield, is rumoured to be in the region of £100m, with it currently jointly owned by The Gores Group, an American investor and Premier Foods.

Premier Foods which also owns brands including Bisto and Angela Delight, acquired the bread maker in 2007 before it sold a majority stake in the in 2014, retaining 49% of the business, before writing off the entire value of its stake two years later.

The firm is currently run by Nish Kankiwala, a former president of both PepsiCo and Burger King, saw a surge in sales during the initial UK lockdown, as shoppers looks to stockpile food staples. However as with the wider bread sector, it has faced a difficult period with consumers looking at gluten-free alternatives to the traditional loaf.

Hovis and Endless declined to comment.