LONDON, 27 May, 2014: GE Capital, one of Europe's leading providers of commercial finance, today announced that it has provided £80 million to finance future growth of the Hovis brand. The deal, which is GE Capital's largest single exposure into the food industry to date will be used to fund general working capital needs following the acquisition of a controlling stake in Hovis Ltd by Gores Group last month.[1]
The news comes as Hovis, one of the largest bread bakery in the UK, looks to improve the efficiency of its operational infrastructure, reinvigorate the Hovis brand and develop its range of products, such as the recently launched "Taste Sensation" flavoured loaves.
Adam Johnson, Managing Director of Corporate Structured Finance at GE Capital said: "Hovis is an iconic British brand that has embarked on a new phase of growth as it looks to regain its leading position in the UK bread market. We're pleased that we were able to provide the right type of financing package that best suited Hovis' needs. The FMCG sector is a strategic sector for us and one we feel is well-suited to the flexibility of alternative finance."
Fernando Goni, Managing Director at The Gores Group, said: "We are excited about the prospects of Hovis given its strong heritage brand and talented management team, and are pleased to be working with GE Capital to develop the company into the future. GE Capital has a deep understanding of the UK food industry and an extensive set of financing capabilities that will help the company drive value for all stakeholders involved."
Founded in 1886, Hovis employs approximately 3,800 people at 10 bakeries, six flour mills and two regional distribution centres across the UK. Hovis also makes Mothers Pride, Ormo and retailer-branded bakery products, as well as supplying flour to a range of customers under its Rank Hovis, Fleming Howden and Holgran trading platforms.
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About GE Capital in the UK
GE Capital, one of the leading commercial finance providers in the UK, has major offices in Bristol, Manchester and the London area and focuses on providing leasing and lending solutions, from working capital and investment finance through to fleet management and equipment leasing to mid-market customers. For more information, please visit www.gecapital.co.uk
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For further information please contact:
Rachel Griffiths
H+K Strategies
Direct: +44 (0) 20 7973 4456
[1] Gores Group acquired 51% of Hovis ltd on 28 April 2014. Premier Foods plc retain a 49% stake
Paige Folta
GE Capital
[email protected]
+44 20785 31677
+44 7825072507