Hovis and Kingsmill in Merger Talks: A Shift in the Bread Market

Deal News | May 03, 2025 | EIN

Associated British Foods (ABF), owner of Allied Bakeries, and investment firm Endless, owner of Hovis, are reported to be in discussions for a possible merger between Hovis and Kingsmill. As challenges deepen in the market due to inflation and changing consumer preferences, both firms are working with bankers to navigate the potential transaction. If realized, the merger would unite two of Britain’s oldest food brands. Allied Bakeries was founded in 1935, while Hovis dates back to 1890. Hovis CEO Jon Jenkins, formerly of Allied, leads amidst these deliberations. The discussions occur amid industry struggles, including rising wheat and flour prices from the Russia-Ukraine conflict, and growing competition from specialty bread producers. The potential merger could create the largest market segment share in the UK's wrapped sliced bread sector, leading to scrutiny from the Competition and Markets Authority.

Sectors

Food and Beverage
Private Equity

Geography

United Kingdom – Both Hovis and Kingsmill are major bread producers in the UK, and the discussions are centered around the British market.

Industry

Food and Beverage – The merger talks between Hovis and Kingsmill pertain to the food and beverage industry, specifically focusing on bread manufacturing within the UK.
Private Equity – Endless, the investment firm involved in the discussions, operates within the private equity industry, indicating investment and acquisition activities common to this sector.

Financials

Not disclosed – Financial details such as the potential acquisition price or deal terms have not been disclosed.
24% share for Hovis, 17% share for Allied in the market – Current market share held by Hovis and Allied Bakeries within the UK's branded wrapped sliced bread sector.

Participants

Name	Role	Type	Description
Hovis	Target Company	Company	A historic bread brand in the UK, currently owned by Endless.
Kingsmill	Target Company	Company	Part of Allied Bakeries, owned by ABF, Kingsmill is a major bread brand in the UK.
Associated British Foods (ABF)	Bidding Company	Company	The owner of Allied Bakeries and a major player in the UK bread market and other sectors.
Endless	Selling Company	Company	A private equity firm that currently owns Hovis.
Jon Jenkins	Hovis CEO	Person	Current CEO of Hovis and former boss of Allied.
Competition and Markets Authority	Regulatory Body	Government	The UK's competition regulator, which may scrutinize the merger for market share concerns.