GE Capital has provided an £80m facility to finance the future growth of the Hovis brand.
The facility will be used to fund general working capital needs following the acquisition of a controlling stake in Hovis Limited by The Gores Group last month.
The move comes as Hovis looks to improve the efficiency of its operational infrastructure, reinvigorate the Hovis brand and develop its range of products including the Taste Sensation flavoured loaves, which were launched last month.
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.”
In January Premier Foods announced that it had separated its bread business into a joint venture with The Gores Group. The move raised £28m in cash.