Historic British brand Hovis could fall into Italian hands

HOVIS could end up in Italian hands after receiving a bid from grains and dairy business Newlat Food.

The British bread brand, whose 1973 TV advert featuring a boy and his bicycle ( pictured) launched the career of film director Ridley Scott, is owned by Premier Foods and US investment firm The Gores Group.

But Italy’s Newlat has joined the £100m race to buy Hovis, as it is auctioned off, pursued by a host of private equity firms.

Newlat, which listed on the Milan stock exchange last year, said a takeover would help it achieve two goals: hitting revenues of £920m, and becoming an important operator in Europe. It said the bread brand has ‘a great tradition and recognisability in the UK’.

Hovis dates back to 1886, when Macclesfield miller Richard ‘Stoney’ Smith found a way of milling that preserved the nutrients in the wheatgerm.

The name came from ‘hominis vis’, a Latin phrase meaning ‘strength of man’. It began supplying the Royal family in 1896, and in 1954 began producing wrapped and sliced bread.

In 2014, Premier sold 51pc of Hovis to The Gores Group as it looked to pump more money in. Gores paid £30m, but half was dependent on future performance. Premier wrote off the value of the rest of its stake in Hovis four years ago.

The bread brand has been facing stiff competition from rivals such as Warburtons and Kingsmill in recent years.

Newlat generates most of its sales in Italy and Germany, and produces a range of products from mozzarella to pasta.

Several private equity houses which specialise in turnarounds are reportedly interested in Hovis, including former Antler luggage owner Endless, Bella Italia owner Epiris, and Aurelius Equity Opportunities.