According to Sky News, Associated British Foods—owner of Kingsmill through its subsidiary Allied Bakeries—could finalize the acquisition of Hovis from private equity firm Endless LLP “within the next week.”
Sources indicate that while a formal merger of the brands is on the horizon, the “complexity” of the deal has created some uncertainty in the timeline.
In May, a spokesperson for Associated British Foods confirmed that the group was in talks with Endless LLP about a potential deal. However, specific details regarding the transaction structure remain undisclosed.
The spokesperson also highlighted the challenging conditions currently affecting the bakery sector.
“We are evaluating strategic options for Allied Bakeries against this backdrop, and we remain committed to increasing long-term shareholder value,” the spokesperson added.
Endless LLP owns several brands, including Bright Blue Foods, Karnova, and West Cornwall Pasty Co. The firm obtained Hovis from Gores Group and Premier Foods in November 2020.
In a statement released alongside Hovis’ 2024 results, the brand’s directors confirmed that talks are ongoing.
“At the present time, these discussions are ongoing. No formal Sale and Purchase agreement has been signed, and the completion of any transaction is expected to be subject to UK regulatory processes,” the statement noted.
Food Manufacture has reached out to Endless for further comment.
In response to the news, Mark Field, CEO of the food-focused Prof Consulting Group, told Food Manufacture: “The latest speculation on the acquisition that would bring two of the UK’s most recognisable and trusted bread brands (Hovis and Kingsmill) together is, in my view, a strong strategic move.”
“In addition to the clear benefits in market share growth, with the two businesses so closely aligned, I would expect there to be significant efficiencies from procurement and packaging through to operations, range rationalisation, and sales that would be unlocked initially. This is critical to drive long-term competitiveness and further market share gains.”
