Advising Endless on sale of Hovis Group to Associated British Foods

Founded in 1886, Hovis manufactures bread and bakery products for the UK’s major grocery retailers and local convenience stores. Walker Morris advised long-standing client Endless on its acquisition of Hovis in 2020, for an undisclosed sum, from Gores Group and Premier Foods plc.

ABF owns Allied Bakeries, a UK bakery business founded in 1935, which produces bread and bakery products (including under the Kingsmill brand). Its Grocery Division comprises consumer-facing businesses that manufacture and market a variety of well-known household brands including Twinings, Ovaltine and Jordans.

The Walker Morris team advising Endless on its exit from Hovis comprised specialists from the firm’s market leading Retail & Consumer and Financial Services sector teams including:

• Banking: Laura Lister (Partner)
• Competition: Sarah Ward (Partner); Liz Turner (Director)
• Employment: Andrew Rayment (Partner); Alice Ruffell (Senior Associate)
• M&A: Debbie Jackson (Partner and Head of Private Equity); Matt Gale (Senior Associate); Joel Davies and Ellie Foster (Associate)
• Tax: Nicola Parkinson (Partner); Charlotte Anderson (Senior Associate)

Aidan Robson, Managing Partner of Endless LLP, said:

“We are proud of the journey we’ve shared with Hovis to date, supporting this historic brand in a highly competitive and challenging market. The transaction with ABF represents an opportunity to create a platform for long-term sustainability in the bakery sector for the benefit of retailers and consumers. While we work towards achieving CMA clearance of the transaction, our focus remains on Hovis to continue delivering exceptional products and service to its customers.”

George Weston, Chief Executive of ABF said:

“This transaction will create a UK bakeries business that is both profitable and sustainable over the long term. Supporting the Hovis and Kingsmill brands with well-invested and efficient operations will also enable innovation and growth. This solution will create value for shareholders, provide greater choice for consumers and increase efficiencies for customers.”

Debbie Jackson, Partner and Head of Private Equity at Walker Morris said:

“Hovis and Kingsmill are household names that will, in combination, be even better placed to respond positively to changing consumer needs and I’m incredibly proud of the huge effort by our team over many months to support Endless and Hovis on this important transaction with ABF.”