Associated British Foods has rebranded its UK bread division as Hovis Bakeries after completing the acquisition of Hovis Group. The deal merges Hovis with Allied Bakeries, the Kingsmill owner, to create what ABF calls a sustainably profitable UK bakeries business with an enhanced market position. The UK's Competition and Markets Authority cleared the transaction in June, noting that without it ABF would likely have exited the UK bakery sector. ABF expects the purchase to be marginally dilutive to earnings in its 2027 financial year before becoming accretive thereafter, with substantial operational synergies anticipated across manufacturing and distribution.
Associated British Foods PLCABF completes Hovis acquisition, expects operational synergies and enhanced market position, though marginally dilutive to FY2027 earnings before becoming accretive.