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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 GBP37m 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.

Ends

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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November 06, 2020 13:40 ET (18:40 GMT)

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