Private equity investor Endless has acquired Hovis, the 134-year-old UK bakery brand for an undisclosed price.
Endless has invested via Endless Fund IV and this is the firm’s third investment in the food sector in recent times. Endless previously owned Karro Food Group - the leading pork business - and currently owns BBF, a leading supplier of ambient cake products to the UK’s major grocers.
An Endless statement said: “Hovis is a favoured consumer bread brand and is supported by its key customers and suppliers. It has seen strong growth in its branded market share and the business is well placed to capture further share of the UK’s £4 billion overall bakery category.”
Headquartered in High Wycombe, Hovis employs around 2,700 people and operates eight bakery sites, its own flour mill and a distribution network spanning the UK and Northern Ireland.
Funding agreed as part of the deal with Endless will allow the Hovis management team to invest in the the business’ infrastructure, as well as the growth of its branded range and other bakery products.
Endless partner Francesco Santinon said: “Hovis is the instantly recognisable British bread brand with a strong and established heritage. We were extremely impressed by the management team and have great confidence in supporting and investing in its future as Hovis looks to achieve further expansion within the bakery category.”
Hovis CEO Nish Kankiwala added: "We are delighted to announce this agreement with Endless today. Based on our extensive engagement with Endless over the past several months, it became clear that both parties share a commitment to customers and colleagues and for building on Hovis’ heritage by investing in growing both the brand and product range. This shared vision makes Endless the best shareholder to support our ambitious plans.”
Endless was advised by Houlihan Lokey, Dechert and KPMG, while Hovis was advised by Robert W. Baird.
The London-based Dechert team was led by partner Ross Allardice, with the support of partner David Miles, senior associates Isaac Bordon, Emma Byford, Mark Evans, Adam Kidane and Sarah Moffat, associates Tom Clarke, Anthony Frost, Alex Pritchard, Ruth Taylor, Eve Wright, and trainees Harriet Geddis, Jade Levin.