Latest news with #Hovis
Daily Mail
a day ago
- Business
- Daily Mail
Report: Hovis and Kingsmill near historic £75M merger
Two of Britain's breadmakers could become one, as Hovis and Kingsmill are nearing a merger agreement. Under the proposed deal, Associated British Foods, which owns Kingsmill's parent company Allied Bakeries, would acquire Hovis for around £75million from Endless, its private equity owners, Sky News reports. The deal could wrap up as soon as the end of next week, according to banking sources with knowledge of the merger. ABF said: '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.' The UK bakery market is worth some £5billion, with the equivalent of 11 million loaves being sold each day. However, the market has contracted in recent years on the back of changing diets and higher bread prices. A merger would see the combined group take the largest market share in the wrapped sliced bread sector. Hovis currently holds a 24 per cent market share, while Allied holds 17 per cent.
Daily Mail
a day ago
- Business
- Daily Mail
Two of the UK's best-known bread brands near historic £75m merger
Two of Britain's breadmakers could become one, as Hovis and Kingsmill are nearing a merger agreement. Under the proposed deal, Associated British Foods, which owns Kingsmill's parent company Allied Bakeries, would acquire Hovis for around £75million from Endless, its private equity owners, Sky News reports. The deal could wrap up as soon as the end of next week, according to banking sources with knowledge of the merger. Due to the complex nature of the transaction, any deal could take longer to be reached, they said. The two bakers could make cost savings of as much as £50million per year as a result of the merger, it was reported. In May, it was revealed that talks were in progress between the two companies. ABF said it was also exploring other options for Allied Bakeries' future that did not involve Hovis. ABF said: '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.' The UK bakery market is worth some £5billion, with the equivalent of 11 million loaves being sold each day. However, the market has contracted in recent years on the back of changing diets and higher bread prices. A merger would see the combined group take the largest market share in the wrapped sliced bread sector. Hovis currently holds a 24 per cent market share, while Allied holds 17 per cent. Combined, the two would surpass the market leader Warburtons, which holds a 34 per cent stake in the market. Sky reports that Warburtons would maintain a higher annual turnover due to its wider product range. A potential deal would likely face probing from the competition watchdog, as a merger would cut the number of major players in the market from three to two. 'What the Competition & Markets Authority may make of matters remains to be seen,' Shore Capital's Clive Black said in May.
Sky News
4 days ago
- Business
- Sky News
Bread producers Hovis and Kingsmill close in on historic merger
The owners of Hovis and Kingsmill are closing in on a definitive agreement to merge two of Britain's most famous grocery brands following months of talks. Sky News has learnt Associated British Foods (ABF), the London-listed company which owns Kingsmill's immediate parent, Allied Bakeries, has proposed paying roughly £75m to acquire Hovis from its long-term private equity backers. Banking sources said a deal could be formally agreed to combine the businesses as early as the end of next week, although they cautioned the complexity of the transaction meant the timing could yet slip. Confirmation of a tie-up would come nearly three months after Sky News revealed ABF and Endless - Hovis's owner since 2020 - were in discussions. Industry sources have estimated that a combined group could benefit from up to £50m of annual cost savings from a merger. ABF has also been exploring options for the future of Allied Bakeries separate from its talks with Hovis in the event a deal could not be agreed or is prevented from completing by competition regulators. If it does go ahead, the merger will unite two historic bread producers under common ownership, with Allied Bakeries having been founded in 1935 by Willard Garfield Weston, part of the family which continues to control ABF. Hovis traces its history back even further, having been created in 1890 when Herbert Grime scooped a £25 prize for coming up with the name Hovis, which was derived from the Latin 'Hominis Vis' - meaning "strength of man". Persistent inflation, competition from speciality bread producers and shifting consumer habits towards lower-carb diets have combined to impair breadmakers' financial health in recent decades, however. In accounts filed at Companies House earlier this month, Hovis said it had "achieved positive financial progress despite continued tough trading conditions". The company reported sales of £439.6m in the 52 weeks to 28 September last year, down from £477.6m in the 53 weeks to 30 September 2023. Earnings before interest, tax, depreciation and amortisation fell from £20.9m to £18.7m, which Hovis said was the result of the revenue decline and higher distribution costs. "Overall bread share remained stable, despite significant price inflation and the ongoing cost-of-living crisis, demonstrating the resilience of the Hovis brand and its iconic status as one of Britain's most loved food brands," the accounts said. This week, the trade publication The Grocer reported that Britain's big four supermarkets, including Asda and Sainsbury's, had delisted a number of Hovis-branded products. The publication quoted a Hovis spokeswoman as saying the company was "aware of some adjustments to Hovis product lines in certain stores". "We remain fully committed to working collaboratively with our retail partners to grow our mutual businesses." The overall UK bakery market is estimated to be worth about £5bn in annual sales, with the equivalent of 11m loaves being sold each day. Critical to the prospects of a merger of Allied Bakeries, which also owns the Sunblest and Allinson's bread brands, and Hovis taking place will be the view of the Competition and Markets Authority (CMA) at a time when economic regulators are under intense pressure from the government to support growth. Warburtons, the family-owned business which is the largest bakery group in Britain, is estimated to have a 34% share of the branded wrapped sliced bread sector, with Hovis on 24% and Allied on 17%, according to industry insiders. A merger of Hovis and Kingsmill would give the combined group the largest share of that segment of the market, although one source said Warburtons' overall turnover would remain higher because of the breadth of its product range. Responding to Sky News' report in May of the talks, ABF said: "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." In a separate presentation to analysts, ABF - which is also in the process of closing its Vivergo bioethanol plant in Hull after pleading for government support - described the losses at Allied, which also owns own-label bread manufacturer Speedibake, as unsustainable. The company does not disclose details of Allied Bakeries' financial performance. Prior to its ownership by Endless, Hovis was owned by Mr Kipling-maker Premier Foods and the Gores family. At the time of the most recent takeover, High Wycombe-based Hovis employed about 2,700 people and operated eight bakery sites, as well as its own flour mill. Hovis's current chief executive, Jon Jenkins, is a former boss of Allied Milling and Baking.
The Sun
17-07-2025
- Business
- The Sun
Britain's oldest bread brand with 139-year history confirms talks over merger as sales plunge by £38million
BRITAIN'S oldest bread brand has confirmed it is in talks to merge with another iconic bakery, after suffering heavy losses. The deal would bring the UK's second and third biggest bread brands together, as demand for sliced white bread declines. 2 2 Huge losses Hovis, which dates back to 1886, has seen its sales take a big hit, with figures from its latest Companies House report showing the iconic bakery has seen a £38 million drop in sales. This comes as the breadmakers' owner, PE Firm Endless, continues talks with ABF's Allied Bakeries, about a possible merger with Kingsmill. The Companies House report confirms talks with a "potential third party". "These decisions are ongoing, no formal sale and purchase agreement has been signed and completion of any transaction is expected to be subject to UK regulatory processes," it said. Turnover at Hovis fell 8.6%, to £446.8 million in the 52 weeks to September 2024, down from £489 million in the previous 53 week financial period. However, underlying profits rose again for the 52-week period, with EBITDA up £1.5 million to £28.4 million. "The group has achieved positive financial progress despite continued tough trading conditions," CEO Jon Jenkins said, "Overall, bread share remained stable, despite significant price inflation and the ongoing cost of living crisis, demonstrating the resilience of the Hovis brand and its iconic status." Decline in demand for bread Breadmakers like Hovis and Kingsmill have been struggling over the past decade, as health conscious Brits are swapping toast for cereal, and eating less white bread. According to recent research, Britons eat a whopping 50% less bread than they used to 50 years ago. A merger between the two companies would put them ahead of Warbutons, the current market leader, which has boosted its sales with crumpets, wraps and muffins as loaf sales falter across the industry. Meanwhile, intense competition in supermarkets has also limited the ability for bread-makers to increase prices as shoppers often use the price of a loaf of as an indicator for whether or not a supermarket is more expensive than a rival. ABF previously said: '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.' The potential deal has been called 'survival through scale' by Anubhav Malhotra, an analyst at Panmure Liberum, who said that the two companies may 'struggle to remain viable independently'. He said: 'Allied Bakeries has faced ongoing challenges amid a highly competitive UK bakery market, characterised by competition for volumes, a price-sensitive consumer and retail landscape conditions under which Hovis also reported an operating loss last year.' Hovis has been contacted for comment. This comes as Santander is set to buy rival bank TSB for £2.64 billion. It is not yet clear whether the brands will be merged, or kept separate. If approved, the deal is expected to be completed in the first quarter of 2026.
Yahoo
12-07-2025
- Entertainment
- Yahoo
Firefighters rescue escaped horse trapped in bog
An escaped horse had to be rescued by firefighters after getting stuck in a bog on the North York Moors. Hovis was found trapped near Cod Beck Reservoir, near Swainby, just after 06:30 BST, having escaped from his enclosure on Friday evening. A spokesperson for Stokesley Fire Station joked the animal had "neigh way out" until he was pulled to safety by firefighters. After being given a much-needed drink in the warm temperatures, Hovis was left in the care of his owner. Listen to highlights from North Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
