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On 21 April 2026, Associated British Foods plc announced that its Board of Directors had decided to proceed with a demerger of Primark, ABF’s Retail business, from its Food business. On completion of the demerger, ABF shareholders will hold shares in both listed entities.
The Board has now completed its in-depth review of the structure of ABF and has concluded that a demerger of Primark is the best way to maximise long-term returns for shareholders, reflecting Primark’s scale today and the need for a better understanding of the food business."
This is an important step in the evolution of ABF. For our Food business, the separation will enable greater understanding of the breadth and strength of our differentiated portfolio and its long-term growth opportunities as the only FTSE 100 pure play food producer. For Primark, it enables the creation of appropriate governance to maximise the future potential offered by Primark’s powerful brand, strong customer proposition and opportunities in existing and new markets."
A global disruptive leader in apparel, providing customers with an unmatched value proposition, combining clear price leadership with differentiated quality and exciting fashion in prime locations
A top-class product engine spanning essentials and fashion, with end-to-end control of innovation, design, licensing, buying and quality, underpinned by industry-leading standards of sustainability and ethical sourcing
Multiple levers to deliver long-term sustainable growth including continued investment in its value proposition, improved product availability, greater digital enablement and increasingly tailored local execution
Exceptional brand strength and proven international expansion strategy, providing a scalable model for growth across existing and new markets through both own stores and franchise partnerships
A well-invested and highly productive store estate underpinned by a scaled, efficient supply chain and lean operating model that delivers strong and resilient margins
An experienced and highly capable team with a long-term mindset, strong execution capability and a uniquely Primark culture
A strong balance sheet with disciplined capital allocation that is focused on driving strong free cash flow and attractive returns
A differentiated, global food portfolio constructed to operate across the food supply chain, in order to benefit from structural trends driving future food demand
Strong and innovative brands and ingredients platforms, targeted at sharply defined market segments, with a well-invested asset base
A focus on long-term earnings growth delivered through a mix of long duration growth and cash generative businesses
A devolved and networked operating model with central oversight supporting local decision-making by those closest to customers and markets, a formula which attracts and retains exceptional talent
A strong balance sheet and significant cash generation which enables long-term, disciplined investments to build businesses and brands
A deeply embedded culture of sustainability and responsible behaviour which focuses on the most material risks and opportunities for its businesses and the communities in which it operates
The ABF Board completed an in-depth review of the structure of ABF and concluded that a demerger of Primark is the best way to maximise long-term returns for shareholders, reflecting Primark’s scale today and the need for a better understanding of the food business.
The opportunities ahead for both Primark and FoodCo are considerable and the Board firmly believes that each will thrive as an independent entity.
The Board believes that a demerger will deliver a number of benefits to each business, in particular:
This is an important step in the evolution of ABF. For our Food business, the separation will enable greater understanding of the breadth and strength of our differentiated portfolio and its long-term growth opportunities as the only FTSE 100 pure play food producer.
For Primark, it enables the creation of appropriate governance to maximise the future potential offered by Primark’s powerful brand, strong customer proposition and opportunities in existing and new markets.
Management intends to host dedicated investor sessions focused on Primark and FoodCo in advance of the demerger to present the standalone businesses and their strategies to existing and prospective investors. Details of these will be released in due course.
It is intended that both Primark and FoodCo will be listed on the Equity Shares (Commercial Companies) category of the London Stock Exchange, and given their scale, it is anticipated that both entities will be constituents of the FTSE 100.
No immediate action is required. ABF will provide further updates on the progress of the demerger as and when appropriate.
On completion of the demerger, ABF shareholders will hold shares in both listed entities
The Board’s intention is for the demerger to become effective before the end of 2027 calendar year and it is subject to the receipt of any necessary approvals and appropriate tax clearances.
