REG - Premier Foods plc Premier Foods Fin - Disposal

Premier FoodsAnnouncement

06/11/2020 07:00

RNS Number : 4492E
  
Premier Foods plc
  
06 November 2020
  
 

               
 6 November 2020
 
Premier Foods plc ("Premier Foods" or the "Group")
 
Disposal of Hovis joint venture
 
Premier Foods plc today announces that it has agreed to the disposal of its interest in Hovis Holdings Limited ("Hovis") to Endless LLP. Alongside its joint venture partner, The Gores Group LLC ("Gores"), the Group has held a 49% minority interest in Hovis since April 2014. Under Gores and Premier Foods' ownership, Hovis has undergone major supply chain restructuring. Hovis, which now focuses on bread baking following the disposal of its milling business, is commercially well positioned to grow under new ownership.
 
The transaction closed and completed late on 5 November 2020; proceeds of £37m due to the Group include the repayment of outstanding loan notes and accrued interest.
 
The Group's investment in Hovis was fully written down in 2016. This transaction strengthens the Group's financial position as it continues to improve its leverage profile.
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
 
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For further information, please contact:
 
Institutional investors and analysts:



Duncan Leggett, Chief Financial Officer


+44 (0) 1727 815 850




Richard Godden, Director of Investor Relations & Treasury 


+44 (0) 1727 815 850



 
Media enquiries:
Headland                                                                                                                               



Ed Young


+44 (0) 7884 666830




Francesca Tuckett 


+44 (0) 7884 667661



 

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