Associated British Foods (ABF) has announced the completion of its acquisition of Hovis Group Limited from Endless LLP, combining it with Allied Bakeries to create a “sustainably profitable UK bakeries business for the long term.”
The combined business will operate as Hovis Bakeries under the brand line ‘Nourishing the Nation’. The integration of the two businesses is expected to deliver operational synergies and efficiencies across production and distribution, with upfront costs anticipated in financial year 2027 before becoming accretive thereafter.
“The completion of this transaction is a significant step towards the delivery of a profitable UK bread business,” said George Weston, Chief Executive of Associated British Foods. “By combining our expertise, scale and capabilities with targeted investment into new product categories, this business can return to growth, provide greater consumer choice, serve our customers better than ever and so create value for shareholders.”
The combined business will invest in growing segments of the UK bakery category, including healthy options, reflecting changing consumer tastes and needs.
“This is an exciting opportunity to create a large and transformative UK bakery business,” said Sarah Arrowsmith, Chief Executive of Hovis Bakeries. “We will now begin the work of revitalising our brands through innovation, becoming the UK’s best own-label bakery partner and strengthening our position as the bakery industry’s route to market through our unique direct-to-store network.”
The transaction is expected to support the wider UK economy, including by securing high-quality jobs.
