The new business will target bakery innovation, healthier ranges and distribution efficiencies as ABF seeks to reshape the UK bread market.
Associated British Foods has completed its £75 million acquisition of Hovis Group Limited from private equity firm Endless LLP, combining it with Allied Bakeries to launch Hovis Bakeries in the UK.
The transaction follows an agreement reached in August 2025 and a review by the UK Competition and Markets Authority. The CMA cleared the deal on 16 June 2026, concluding that it would not create significant competition concerns, despite both companies’ positions in the UK bread market.
Hovis, founded in 1886, manufactures branded and private-label bread and bakery products for grocery retailers and convenience channels. Allied Bakeries, founded in 1935, produces bread and bakery products including Kingsmill.
The completion of this transaction is a significant step towards the delivery of a profitable UK bread business.
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.”
George Weston, Chief Executive of Associated British Foods
Building a stronger UK bakery platform
The newly formed bakery business will operate under the brand line ‘Nourishing the Nation’, with ABF aiming to build a more profitable and resilient player in the UK bread market. The group said the enlarged operation will support investment in brands, product innovation and faster-growing bakery segments, including healthier options.
ABF will begin integrating Hovis Group and Allied Bakeries shortly. It expects the combined operation to deliver substantial synergies across production and distribution, improving efficiency while strengthening its route to market.
“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 transaction will support the wider UK economy, including by securing high-quality jobs. I am confident that our uniquely capable team have the right plans to build this business.”
Restructuring costs and future growth
Hovis Bakeries is expected to weigh slightly on ABF’s earnings in its first full financial year, as the group absorbs upfront restructuring costs, before contributing positively thereafter.
Sarah Arrowsmith, Chief Executive of Hovis Bakeries, said: “This is an exciting opportunity to create a large and transformative UK bakery business. 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.”
Endless said the sale marks the next stage for the bakery brand after a period of transformation under its ownership.
Aidan Robson, Managing Partner of Endless LLP, added: “We are incredibly proud of the progress Hovis has made during our ownership. Working closely with the management team, we have supported the business through a period of amazing transformation, reinforcing the position of Hovis as one of Britain’s most iconic food brands. We believe ABF will be an excellent long-term owner for Hovis and is well placed to support the combined group. We would like to thank the entire Hovis team for their commitment and resilience over the last few years and wish them every success for the future.”
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