We completed the acquisition of Hovis Holdings Ltd (‘Hovis’) from vendors Gores Group and Premier Foods plc on 5 November 2020. Hovis is one of the most recognisable food brands in the UK, manufacturing branded and private label bread and other bakery products for the major grocery retailers and local convenience stores.
As good as it’s always been, Hovis has a strong heritage and reputation with a rich history spanning over 134 years. Headquartered in High Wycombe, the business has c.3,000 employees and operates eight bakeries, a flour mill and a distribution network spanning the UK and Northern Ireland. The business also owns the Ormo and Mother’s Pride brands.
In FY19 Hovis generated revenue of c.£332m and EBITDA of c.£16m, and over the last few years has invested significantly in its operations and product quality. The business is also firmly committed to its social responsibilities; Hovis is one of the only major bakers to use 100% recyclable packaging, is shifting its fleet away from traditional fuel to green diesel, and 0% of waste produced from its bakeries and mill goes to landfill.
Nish Kankiwala, Hovis Chief Executive Officer, said: “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. The acquisition will help drive our strategy for growth by bringing both strategic and operational value to Hovis. We are looking forward to working together to execute this strategy and to delivering the next phase of growth."
Francesco Santinon, Partner at Endless LLP, added: “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.”
Key person for this case study
Francesco joined Endless at start of 2013 and is currently a Partner in the Investment Team and a member of Endless LLP. Francesco leads our London Office and investment activity in the South East. Since joining the firm Francesco has been involved with numerous transactions including Gradus, The Book People, Ink Media, Brabant Alucast, Arran Aromatics, and Affinity Workforce. He has also led a number of secondary debt acquisitions and realisations.