The Gores Group has closed its £30 million ($51 million) purchase of a 51% stake in the Bread business of Premier Foods. The business will operate as a stand-alone joint venture between The Gores Group and Premier Foods. Premier Foods invested £15 million ($25 million) in the joint venture, which is now dubbed Hovis Limited and valued post-deal at £87.5 million ($147 million).
In proportion to their respective holdings, the two investors agreed to also support Hovis with a combined commitment of up to £45 million ($76 million). Over the next five years, the company plans to receive about £200 million ($337 million) from both The Gores Group and Premier Foods.