Allied Bakeries’ parent company Associated British Foods (ABF) is to buy UK premium cereal maker Dorset Cereals in a deal believed to be worth £50m.

It is the second cereal brand to come under the company, joining Jordons, which was absorbed into the business when it was merged with Ryvita in 2008.

The brand will stay with current owners Wellness Foods, which bought it for £50m in the same year. The cereal brand ranked sixth in its market last year, accoutning for a 2% share of the overall retail value, according to Euromonitor International. ABF ranked at fifth with Jordons.

Dorset manufactures premium breakfast items including porridge, granola, muesli and cereal bars and has annual sales of £40m.

Rumours of a sale emerged towards the end of last year with market leader Kellogg’s among potential buyers.