{"id":125952,"title":"Kingsmill Owner and Hovis Celebrate Takeover Agreement","publisher":"Share Talk","author":"sharetalk","published":"2025-08-15T09:45:54+00:00","modified":"2025-08-15T09:45:54+00:00","canonical_url":"https://www.share-talk.com/kingsmill-owner-and-hovis-celebrate-takeover-agreement/","markdown_url":"https://www.share-talk.com/kingsmill-owner-and-hovis-celebrate-takeover-agreement.md","json_url":"https://www.share-talk.com/kingsmill-owner-and-hovis-celebrate-takeover-agreement.json","category":"Business & Support Services","categories":["Business & Support Services","Food & Beverages","Food Industry","Technology","Technology, Media & Telecoms"],"tags":["ABF","Allied Bakeries","Allinson","Associated British Foods","George Weston","Hovis","Kingsmill","Primark","Sunblest","Warburtons"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/08/WhatsApp-Image-2025-08-15-at-10.41.53.webp?fit=1200%2C900&quality=80&ssl=1","format":"news","language":"en-GB","content":"**Associated British Foods (ABF),** the FTSE 100 company behind Kingsmill and retailer Primark, has agreed to acquire rival bakery brand Hovis from private equity firm Endless — a move that could create the UK’s largest bread brand if approved by regulators.\n\nThe deal, uniting the country’s second- and third-largest bread brands, is expected to attract scrutiny from the Competition and Markets Authority. Both companies have been losing ground to market leader Warburtons. Hovis reported a near 9% fall in revenue to £447 million in the year to 28 September 2024, with pre-tax losses widening to £4.7 million, compared with £3.6 million the year before. This included £530,000 in one-off restructuring costs.\n\nABF’s bakery arm, Allied Bakeries — which produces Kingsmill, Allinson’s, and Sunblest — also faced challenges, recording an estimated £30 million annual loss last year despite sales of about £400 million, according to broker Panmure Liberum.\n\nABF said combining the production and distribution operations of Allied Bakeries and Hovis would generate cost savings and efficiencies, creating a profitable and sustainable UK bread business over the long term.\n\nGeorge Weston, ABF chief executive, said:\n\n“This transaction will create a UK bakeries business that is both profitable and sustainable over the long term. Supporting the Hovis and Kingsmill brands with well-invested and efficient operations will also enable innovation and growth. This solution will create value for shareholders, provide greater choice for consumers, and increase efficiencies for customers.”"}