Greencore agrees deal to acquire rivals Bakkavor
Greencore looks to acquire rivals Bakkavor as a deal is agreed in principle to acquire the UK company
Print2 April 2025
Greencore recently agreed a deal in principle to acquire rivals Bakkavor, possibly worth €1.4 billion (£1.2 billion).
The supermarket sandwich maker is looking to strike a deal to create a food-to-go giant.
Bakkavor is an international food manufacturing company that specialises in fresh prepared foods.
The deal in principle
The deal aims to create a leading UK convenience food business with a combined revenue of approximately £4 billion.
In a statement, Greencore expressed key terms between themselves and Bakkavor that entail each share is worth 200 pence valuing the latter’s share capital at approximately £1.2 billion on a fully diluted basis.
Under the deal’s basis, Greencore shareholders would hold around 56% of the combined group, while Bakkavor would own a minority stake of 44%.
This valuation represents a premium of:
- 32.5% to Bakkavor’s undisturbed closing share price of 151 pence per share on 13 March 2025
- 39.8% to Bakkavor’s volume-weighted average closing share price of 143 pence per share for the three months to 13 March 2025
- 36.6% to Bakkavor’s volume-weighted average closing share price of 146 pence per share for the six months to 13 March 2025.
About Bakkavor
The international food manufacturing company has circa 18,000 colleagues from over 100 nationalities.
They make circa 3,500 fresh products based on meals, pizza, bread, salads and desserts.
There are 42 sites across the UK, US and China markets.
Bakkavor is reported to generate £1,948.5 million in revenue in the UK, which caters for 85%.
Greencore in Ireland
The food specialist supplies all major UK supermarkets, while the head office is in Dublin.
Their Dublin location houses key members including the Group CEO, CFO, general counsel, company secretary and strategy and transformation officer.
Central finance and treasury teams are also working in their offices at Dublin Airport.
Over 750 million food-to-go items are being supplied annually, as the group employs over 13,300 staff in the UK and Ireland.
The deal is conditional on Greencore making a firm offer that Bakkavor’s board has said it would unanimously back.
Read more: Greencore reports strong Q1 growth with 7.5% revenue increase
© 2025, ShelfLife by Ryan Brennan
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