A spokesperson for Associated British Foods, which owns Kingsmill parent company Allied Bakeries, confirmed in a statement that the group is in talks with Hovis owner Endless LLP, a UK-based private equity firm, about a possible deal.
According to Sky News, the deal could be structured as an acquisition of Hovis by Associated British Foods, although further details of a potential transaction have not yet become fully clear.
The group is also said to be exploring other options for the future of Allied Bakeries that do not involve a deal for Hovis.
“Associated British Foods notes recent media speculation and confirms that it is in discussions with Endless LLP regarding a potential transaction,” the firm said in a statement published on 6 May.
“However, there is no certainty that a transaction will be concluded nor as to the terms of such a transaction.”
Associated British Foods also acknowledged the current “challenging” nature of the bakery market, which has prompted the group to evaluate its strategic options moving forward.
“As stated in our Interim Results Announcement on 29 April 2025, Allied Bakeries continues to face a very challenging market,” the spokesperson added.
“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate.”
Meanwhile, a Hovis spokesperson said: “Further to recent news, we are aware that ABF plc has been in discussions with Endless LLP but we are not able to provide any further detail at this stage.”
Endless announced last month that it had entered into an agreement with Whitworths Food Group to sell KTC Edibles Group, a business that Endless first acquired in May 2022. Since then, KTC turnover has grown by more than £150 million, while profitability has more than doubled.
The firm acquired Hovis from Gores Group and Premier Foods in November 2020.
