Mr Kipling may head for stock market
THE company that makes Mr Kipling cakes, Paxo stuffing and Hovis bread is planning a flotation that could value it at more than £1bn.
RHM, which employs more than 20,000 staff at 69 sites in the UK and the rest of Europe, is said to be preparing for a public listing next year.
Private equity group Doughty Hanson, which bought RHM in 2000, considered floating the company on the Stock Exchange previously.
Doughty Hanson has now instructed Credit Suisse First Boston to prepare for a listing in the second half of next year, according to a report in the Financial Times.
RHM is one of the largest food companies in the UK and Ireland with annual sales of around £1.75bn.
Other brands include Mothers Pride and Nimble bread, Bisto gravy, Sharwood's Asian sauces, Lyons cakes, Robertson's jam and Golden Shred marmalade.
It is also a major supplier of food to Marks & Spencer, providing the retailer with chilled ready meals and desserts, celebration cakes and premium jams and marmalades. Other customers include McDonald's, Pizza Hut, Morrisons and Waitrose.
A spokesman for RHM said: 'RHM is private equity-owned and so it may join the stock market one day. This is just one of a number of options. No decision has been taken at this stage.'
