Associated British Foods (ABF) has today (8 July 2026) announced that it has successfully completed its £75 million acquisition of Hovis from private equity firm Endless.

ABF, owner of the Kingsmill bread brand, entered discussions with Endless last year regarding the merger. The deal brings together two of the UK’s most well-known packaged bread brands under the same ownership.

From today, Allied Bakeries – ABF’s UK bakery business – and Hovis Group will operate together as Hovis Bakeries under the brand line ‘Nourishing the Nation.’ It will focus on investment into growing segments of the UK bakery category driven by evolving consumer needs, including healthy options.

The companies reached an agreement on the deal back in August 2025, with the merger then subject to an investigation from the UK Competition and Markets Authority (CMA). The competition watchdog cleared the deal last month, concluding that it would not create significant competition concerns despite both companies being major players in the UK’s bread market.

The CMA found that if the merger had not gone ahead, the most likely outcome would be Allied Bakeries exiting the market entirely in Great Britain and Northern Ireland. Evidence gathered pointed to Allied Bakeries’ recent financial challenges, facing significant losses over the last 14 years, due to declining demand in the bread market, raw material cost increases and rising demand for lower-margin private-label products.

In a statement announcing the acquisition’s completion, ABF said the deal will create a sustainably profitable UK bakeries business for the long-term with an enhanced market position.

The merger, set to commence shortly, is expected to deliver substantial operational synergies and efficiencies across production and distribution. This will drive improved profitability and enable investment in brands and product innovation, ABF said.

George Weston, chief executive of ABF, commented: “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”.

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.”