REG - Assoc.British Foods - ABF to acquire Hovis Group

Associated British FoodsAnnouncement

15/08/2025 07:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250815:nRSO5050Va&default-theme=true

RNS Number : 5050V  Associated British Foods PLC  15 August 2025

 

 

 

15 August 2025

 

ABF to acquire Hovis Group, following review of strategic options for Allied
Bakeries

As stated at the interim results, Associated British Foods plc ("ABF") has
been evaluating a range of strategic options for Allied Bakeries, its UK
bakery business. Profitability at Allied Bakeries has been increasingly
challenged in recent years by a decline in demand for pre-sliced, packaged
bread and a loss of scale in Allied Bakeries' nationwide distribution network
serving the major retailers with daily delivery of bread and bakery goods.

Following this review, ABF announces today that it has reached an agreement to
acquire Hovis Group Limited ("Hovis Group") from Endless LLP. Hovis Group is
an integrated bakery business, engaged in the production and distribution of
bread and bakery products in the UK.

The acquisition will combine the production and distribution activities of the
two businesses, driving significant costs synergies and efficiencies, to
create a profitable UK bread business that is sustainable over the long term.
The combined business will be better placed to compete effectively and to
establish a stable platform for product innovation in the segments of the UK
bakery category that are growing as a result of changing consumer tastes and
needs. This will include improvement in existing products and expansion into
new product ranges.

The completion of the transaction is subject to regulatory approval.

George Weston, Chief Executive of Associated British Foods, said:

"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."

 

 

For further information, please contact:

Associated British Foods

+44 20 7399 6545

Joana Edwards, Interim Finance Director

Lucinda Baker, Head of Investor Relations

Chris Barrie, Corporate Affairs Director

 

Citigate Dewe Rogerson

+44 20 7638 9571

Claire de Groot

Sabine Pirone

 

Media inquiries

FGS

James Murgatroyd +44 7768 254 911

Sarah Roberts +44 7827 808 421

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQQELBFEVLXBBL