Kingsmill Owner AB Foods to Buy Hovis in UK Bread Combination

Associated British Foods Plc, owner of UK bread brand Kingsmill, agreed to buy rival baker Hovis from its private equity backer.

AB Foods said the deal with PE firm Endless LLP will let Kingsmill parent Allied Bakeries and Hovis combine production and distribution activities and expand into new product ranges. The combination is subject to regulatory approval, and no value was given.

“This transaction will create a UK bakeries business that is both profitable and sustainable over the long term,” George Weston, Chief Executive Officer of AB Foods, said in a statement Friday, as the company cited a ...