Premier Foods, a UK-based food company, has confirmed that it is in talks over a sale of stake in its bread division, which produces brands, including Hovis and Mother’s Pride.
The company has approached private equity groups and appointed independent financial advisory firm Ondra Partners to search for outside investors for the bread business, reported Sky News.
There is a possibility of spinning out the business as a separate entity, which would be jointly owned by Premier Foods and another investor.
Premier stated there is no certainty that a transaction will follow at any point in the future, adding that it will provide timely updates.
In October, Premier CEO Gavin Darby was quoted by Reuters as saying that the company had no plans to divest Hovis business and was focused on expanding it.
However, the company stated that options were kept open.
"I tend to come from a background of trying to grow things, so we are working hard on a growth strategy for Hovis," Darby added.
After losing a number of contracts, the company had shut three bakeries and two mills this year, eliminating 1,000 jobs.
