Associated British Foods has rebranded its UK bread division as Hovis Bakeries after completing the acquisition of rival baker Hovis Group.
Hovis has now been merged with Allied Bakeries, the UK baking arm of ABF, the Kingsmill owner announced today (8 July)
ABF said the deal would create a “sustainably profitable UK bakeries business for the long term with an enhanced market position”. The company said the combined operations would channel investment into areas of the UK bakery market that are expanding because of “changing consumer tastes and needs, including healthy options”. ABF had struck a deal to buy Hovis from private-equity firm Endless in August last year.
The acquisition was cleared by the UK’s Competition and Markets Authority in June. In its final findings, the regulator said the transaction did not present competition issues and said that, without the deal, the “most likely outcome” would have been ABF exiting the UK bakery sector. ABF had placed Allied Bakeries, the owner of the Kingsmill and Sunblest brands, under review in April last year.