RHM to float - report
RHM, the British company behind some of the country's best-known
brands of bread and cake, could be floated on the stock market
sometime next year, valuing the company at around £1 billion,
according to press reports.
brands of bread and cake, could be floated on the stock market
sometime next year, valuing the company at around £1 billion,
according to press reports.
The Financial Times newspaper suggests that Doughty Hanson, the private equity group which acquired RHM in 2000, has begun making preparations for the floatation in the second half of 2005.
RHM, whose brands include Mr Kipling cakes and Hovis bread, has found the going tough in recent years, especially at its Manor Bakeries unit which produces a range of branded cakes. The rising popularity of own label cakes has taken a major toll on sales, forcing the RHM management to invest substantial amounts in revamping the business.
According to the paper, Doughty Hanson will invest some £45 million in Manor Bakeries over the next three years, setting aside around £15 million for brand marketing alone.
