LONDON: Greencore Group PLC has agreed to acquire Bakkavor Group PLC in a deal valued at approximately £1.2 billion, creating one of the largest UK convenience food businesses.
Under the terms of the recommended acquisition, Bakkavor shareholders will receive 0.604 new Greencore shares and 85 pence in cash per share, valuing each Bakkavor share at 200 pence based on Greencore’s share price of 190 pence. The transaction also includes contingent value rights tied to a potential sale of Bakkavor’s U.S. business.
The combined company will generate approximately £4 billion in revenue and employ around 30,500 workers. Executives say the merger will enhance customer offerings by blending Greencore’s expertise in “food for now” categories with Bakkavor’s strength in “food for later” products.
“This transaction marks a transformative growth opportunity, creating a true UK leader in convenience food,” said Greencore Chair Leslie Van de Walle. “We intend to bring together our strong and complementary companies to deliver high-quality, innovative food to UK customers and consumers.”
Bakkavor Chair Simon Burke called the merger an “attractive” opportunity for shareholders. “This transaction offers a significant premium with the ability to participate in future value creation,” Burke said.
The acquisition remains subject to shareholder approval and regulatory review.