Associated British Foods (ABF) has agreed to acquire Hovis Ltd from the private equity firm Endless LLP. This transaction brings together two of the UK's largest bakery brands, Hovis and Kingsmill (owned by ABF's Allied Bakeries), in a strategic move to address long-term structural decline in the pre-packaged bread market. The deal aims to combine production and distribution operations to generate significant efficiencies, with estimated annual cost savings of �50 million. The merger is subject to rigorous scrutiny by the Competition and Markets Authority (CMA) due to the high market concentration it creates.

The transaction values HOVIS at an EV/Revenue multiple of LOGIN.

This transaction is part of the AgriFood industry, which currently tracks an average EBITDA multiple of 10.1x since the beginning of 2026, 9.8% decrease compared to 2025. This data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.