Leeds private equity firm Endless LLP has reached an agreement to sell Hovis to Associated British Foods (ABF). Completion of the transaction will be subject to regulatory review by the Competition and Markets Authority (CMA).
Founded in 1886, Hovis manufactures bread and bakery products for the UK’s major grocery retailers and local convenience stores. Endless acquired Hovis from Gores Group and Premier Foods in November 2020.
ABF owns Allied Bakeries, a UK bakery business founded in 1935, which produces bread and bakery products (including under the Kingsmill brand).
George Weston, chief executive of ABF, 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.”
Aidan Robson, managing partner of Endless LLP, said: “We are proud of the journey we’ve shared with Hovis to date, supporting this historic brand in a highly competitive and challenging market.
“The transaction with ABF represents an opportunity to create a platform for long-term sustainability in the bakery sector for the benefit of retailers and consumers. While we work towards achieving CMA clearance of the transaction, our focus remains on Hovis to continue delivering exceptional products and service to its customers.”
Endless LLP and Hovis were advised by Walker Morris (legal and regulatory) and Freshfields (regulatory). ABF were advised by Rothschild (corporate finance), KPMG (financial and tax), Allen & Overy (legal), Macfarlanes (regulatory), and Frontier Economics (regulatory).
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