Britain's oldest bread brand with 139-year history SOLD to Primark owner in historic merger

The Sun

a day ago

BRITAIN'S oldest bread brand has been sold to the owner of Primark in a historic merger.
Associated British Foods (ABF) is to snap up Hovis Group and merge the business with its own bakery arm.
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The firm, which owns Kingsmill bread said it 'reached an agreement' to buy Hovis from private equity owner Endless.
The multinational told investors the deal will 'combine' the production and distribution activities of Hovis and its Allied Bakeries business, which makes Kingsmill and Allinson's bread.
The group said the move will lead to 'significant costs synergies and efficiencies' in an effort to create a sustainably profitable bread business.
Sources in the industry previously suggested that as a combined group, benefits of up to £50 million in annual cost savings could be made from the merger.
ABF said: '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.'
It comes three months after ABF first confirmed talks over a potential deal.
The deal will see the second and third largest suppliers of packaged bread in Britain's major supermarkets come together.
Warburtons, is the largest bakery in the UK, with an estimated 34% share of the branded sliced breads.
Hovis holds 24% and Allied Bakeries 17%, making their merger give them the largest segment of the market.
As a result, the deal is likely attract the attention of the Competition and Markets Authority (CMA).