Hovis Holdings, the iconic British breadmaker, has received a takeover offer from Milan-based Newlat Food.
A statement from Newlat Foods read: “Newlat Food S.p.A. confirms that it has submitted to the shareholders of the Hovis Holdings Limited group a non-binding offer aimed at acquiring all the shares of the Target, in the context of a non-exclusive competitive auction. The economic offer was formulated by evaluating the sustainability of the investment in the short, medium and long term, in compliance with the rigorous economic and financial discipline that has always characterized the Company’s investments.
“The management of Newlat Food considers it useful to underline that the acquisition of Hovis, an over 100-year-old brand with a great tradition and recognizability in the United Kingdom, would allow Newlat Food to anticipate by 24 months two important objectives set out in the business development plan proposed to investors during the IPO road-show: Achieve consolidated revenues of approximately €1bn; and become one of the most important operators in the food sector in Europe, with a substantial market share in Italy, Germany and the United Kingdom.
“The production and distribution structure of Hovis would also offer the possibility to benefit from
numerous synergies and to implement a virtuous cross-selling activity. Newlat Food is awaiting feedback from Hovis shareholders and, therefore, any other details regarding the transaction will be communicated with the evolution of the negotiations.”
Hovis Holdings is owned by Premier Foods and US investment firm the Gores Group, following its own takeover back in 2014.
Based in High Wycombe, the company employs more than 2,800 people across the UK.