Dublin-based convenience food manufacturer Greencore has reached an agreement to acquire UK fresh food provider Bakkavor Group in a deal valued at £1.2 billion (€1.4 billion), creating a major player in the British food-to-go sector.
The acquisition, announced Thursday following preliminary discussions in April, will combine two complementary businesses with extensive reach across UK supermarkets. The deal structure includes 0.604 new Greencore shares and 85 pence in cash for each Bakkavor share, valuing them at 200 pence each, with potential additional value if Bakkavor’s US business is sold.
Greencore has secured binding commitments from Bakkavor shareholders representing approximately 69.4 percent of the company’s shares. Upon completion, Greencore shareholders will own about 56 percent of the combined entity, with Bakkavor shareholders holding the remaining 44 percent.
Leslie Van de Walle, Chair of Greencore, expressed enthusiasm about the transaction: “We have long admired Bakkavor and we are pleased to announce a transaction that will create a true UK leader in convenience food. We intend to bring together our strong and complementary companies to deliver high-quality, innovative food to UK customers and consumers.”
Greencore, which supplies nearly 750 million food-to-go items annually and employs approximately 13,300 staff, will expand its market presence by integrating with London-headquartered Bakkavor, which employs around 17,200 people across 41 sites in the UK, US, and China. Bakkavor’s product range includes soups, dips, salads, desserts, pizzas, and breads.
Dalton Philips, Chief Executive of Greencore, highlighted the strategic benefits: “The combined group will be able to invest more in innovation and product development ensuring we can provide the consumer with greater food choices at more points in the day, bringing together Greencore’s ‘food for now’ expertise with Bakkavor’s ‘food for later’ portfolio.”
Both companies currently supply all major UK supermarkets, with Bakkavor counting Tesco, M&S, and Waitrose among its retail customers. The merger comes as Bakkavor had been restructuring its operations to address challenges including high costs, subdued consumer demand, and reduced volumes.