![\"Primark](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/Primark.jpg\")
\t\tPrimark and ABF’s food arm notch around \u00a310bn each in revenue\t<\/p>\n\t\t\tTuesday 21 April 2026 7:05 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tTuesday 21 April 2026 8:17 am\n\t<\/p>\n
\t\tPrimark and ABF’s food arm notch around \u00a310bn each in revenue\t<\/p>\n
FTSE 100 titan Associated British Foods has confirmed plans to spin off clothes retailer Primark, signalling a dramatic change in direction for the food and retail firm.<\/p>\n
Shares in the firm slid more than six per cent on Tuesday\u2019s open, leaving the stock down 16 per cent in the year so far.<\/p>\n
The market had widely expected Associated British Foods (ABF) to spin off the retailer following an internal review as it battles with intense competition from high street rivals H&M and Zara.<\/p>\n
The announcement seals months of speculation over Primark\u2019s future, and ABF<\/a> said it expects both firms will be listed separately on the blue-chip FTSE 100 index.<\/p>\n ABF enlisted Rothschild & Co last year to help it carry out a \u201cstrategic\u201d review to weigh up whether to offload the retailer.<\/p>\n The firm said it is \u201cconfident\u201d in the prospects of both businesses, and chief executive George Weston said the move is an \u201cimportant step in the evolution\u201d of the group.<\/p>\n Associated British Foods is controlled by the Westons, the UK\u2019s richest family, whose holding company, Wittington Investments, holds about 59 per cent of the firm.<\/p>\n As well as Primark, ABF owns tea brand Twinings, baked goods maker Kingsmill and subsidiary British Sugar.<\/p>\n ABF, which has seen its share price drop so far this year, said it expects the demerger to cost around \u00a375m.\u00a0<\/p>\n The split-off will occur through a dividend demerger, which will allow ABF to separate off Primark by distributing shares in it to existing shareholders.<\/p>\n Primark sales grew in last year<\/p>\n FoodCo, which is what will remain of ABF once Primark is split off, operates across 52 countries and takes around \u00a39.8bn in annual revenue.<\/p>\n Primark today operates 486 retail stores across 19 markets, with approximately \u00a39.5bn of annual revenue and more than 83,000 employees.\u00a0<\/p>\n Overseas expansion has been a key area of focus for the business, as it seeks to build market share across Europe and the US.<\/p>\n \t\t\t\t\tRead more<\/p>\n