Premier Foods seeks investor for stake in bread unit, says source-Reuters

(Reuters) – Britain’s Premier Foods is looking for an outside investor to help shore up its struggling bread business, a source familiar with the matter told Reuters.

Sky News reported on Tuesday that the company, which also owns brands like Mr Kipling cakes and Bisto gravy, has approached private equity groups about the sale of a stake in its bread business, which includes the Hovis brand.

Sky said the group had asked financial advisory firm Ondra Partners to lead the search for an outside investor, sending shares in Premier Foods up 4.9 percent to 140.25 pence at 1448 GMT.

Ondra Partners were not immediately available for comment and Premier Foods declined to comment.