Premier Foods plc has held discussions with private-equity investors in a bid to secure backing for its Hovis bread unit, just-food understands.

The UK food group’s search for investment options for its struggling bread business has resulted in talks with private-equity firms HIG Europe, Sun European Partners and PAI Partners.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to a Sky News report, the talks are said to be at a “relatively early stage”, and come just three weeks after Premier engaged the services of a financial advisory firm to rescue its Hovis division.

However, a spokesperson for Premier declined to comment on the fresh report.

Last year, it was rumoured the company had appointed Goldman Sachs to assess the potential sale of its entire bread unit. However, the focus has since moved to reducing costs and improving efficiency while also driving sales of its “power brands”.

See Also:

Its bread sales have come under increasing pressure in a relatively promotional UK bread market. In its most recent quarterly update, Premier said its bread unit saw sales dip 1.5%, again affected by the hot weather.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company has been restructuring the division in a bid to boost profitability and last year Premier said it would cut 900 jobs, close over 100 distribution routes and revamp its logistics operation. Premier has closed bakeries in Greenford and Birmingham as well as its Glasgow mill this year.

HIG Capital and PAI Partners declined to comment on the reports, while Sun European Partners had not returned a request for comment at the time of writing.