Bakery group confirms talks over merger with Hovis to create Britain’s biggest breadmaker
The owner of Hovis, which has a bakery in Avonmouth, is in talks with Allied Bakeries owner Associated British Foods (ABF) over a possible historic merger of the two iconic bread brands.
Speculation had grown over the weekend that Kingsmill, owned by Allied Bakeries and Hovis, backed by private equity firm Endless, will be combined following a long decline in supermarket loaf sales amid competition from speciality bakers and a move to more low carb diets.
Hovis employs around 300 people at its historic site in Avonmouth, where it makes a wide range of bread products.
The merger would create Britain’s biggest breadmaker.
However, analysts have warned the move could come under scrutiny of the Competition and Markets Authority. Endless acquired the iconic bakery brand, Hovis, back in 2020 for an undisclosed price.
Hovis was created in 1890 following a national competition held to replace the original ‘Smith’s Patent Process Germ Flour’ name. A prize of £25 was offered to the winner. The winner was Herbert Grime, suggesting the name ‘Hovis’, from the Latin “hominis vis” meaning “strength of man”.
It was acquired by Leeds-based private equity group Endless from Gores Group and Premier Foods plc in2020.
Allied Bakeries was founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF.
In a statement APB responded saying that it noted media speculation and confirmed that it is in discussions with Endless regarding a potential transaction. However, there is no certainty that a transaction will be concluded nor as to the terms of such a transaction.
The group added: “As stated in our interim results announcement on 29 April 2025, Allied Bakeries continues to face a very challenging market. 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.”
Headquartered in High Wycombe, Hovis employs around 3,000 people and operates a flour mill, eight bakeries, including Avonmouth, and a distribution network spanning the UK and Northern Ireland.
Since its acquisition by Endless, Hovis was launched its new premium range of bakery products under the Bakers Since 1886 brand, including artisanal cobs, burger buns and hot dog rolls.
Hovis has also adopted 100% recyclable packaging, uses eco-friendly green diesel for its vehicle fleet, and pledges that no waste from its bakeries or mill ends up in landfills.
Endless’ food and drink portfolio also includes West Cornwall Pasty Company, Hull-based cake and chilled desserts manufacturer Bright Blue Foods and Karnova Food Group, which was created following Endless’ acquisition and integration of Yorkshire Premier Meat and Smithfield Murray. It also has invested in Crown Paints and jeweller Theo Fennell.
