Associated British Foods plc (ABF) completed its acquisition of Hovis Group Limited from Endless LLP. Allied Bakeries and Hovis Group will operate as Hovis Bakeries, under the brand line ‘Nourishing the Nation’.

Combining Hovis Group with Allied Bakeries, the UK bakery business of ABF, will create a sustainably profitable UK business with an enhanced market position, ABF highlights. The business will invest in the segments of the UK bakery category that are growing as a result of changing consumer tastes and needs, including healthy options.

The integration of the two businesses will begin shortly and will entail restructuring current operations, for which upfront costs are anticipated. “We expect the acquisition to be marginally dilutive to ABF’s earnings in financial year 2027 as these actions are undertaken, with the transaction becoming accretive thereafter,” ABF says in an announcement.

George Weston, Chief Executive of Associated British Foods, said: “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. 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.”

Sarah Arrowsmith, Chief Executive of Hovis Bakeries, also shared a statement: “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.”

Photo: Hovis Bakeries (LinkedIn)