A spokesperson for Associated British Foods, the parent company of Kingsmill through Allied Bakeries, confirmed in a statement that the group is engaged in discussions with Hovis owner Endless LLP, a private equity firm based in the UK, regarding a potential deal.
According to Sky News, the proposed deal may involve the acquisition of Hovis by Associated British Foods. However, further details about the transaction remain unclear at this stage.
Additionally, the group is exploring alternative options for the future of Allied Bakeries that do not include a deal for Hovis.
“Associated British Foods notes recent media speculation and confirms that it is in discussions with Endless LLP regarding a potential transaction,” stated the firm in a release dated 6 May.
“However, there is no certainty that a transaction will be concluded nor as to the terms of such a transaction.”
Moreover, Associated British Foods acknowledged the current market’s “challenging” nature, which has prompted the group to evaluate its strategic options for the future.
“As stated in our Interim Results Announcement on 29 April 2025, Allied Bakeries continues to face a very challenging market,” the spokesperson added.
“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate.”
Last month, Endless announced an agreement with Whitworths Food Group to divest KTC Edibles Group, a business it initially acquired in May 2022. Since that acquisition, KTC’s turnover has seen growth exceeding £150 million, while profitability has more than doubled.
Endless’s food and drink portfolio also includes Bright Blue Foods, Karnova, and West Cornwall Pasty Co, in addition to Hovis, which it acquired from Gores Group and Premier Foods in November 2020.
