Food manufacturer Bakkavor is to be purchased by manufacturer Greencore for the sum of £1.2 billion to create a company with a combined revenue of £4 billion after the companies reach an agreement in principle.
The proposed acquisition sees Greencore shareholders owning approximately 56% and Bakkavor shareholders owning approximately 44% of the combined group.
The boards of Greencore and Bakkavor said that the combined businesses would have a diverse product offering, strong commercial relationships and highly competitive capabilities across the convenience food landscape.
This comes after Greencore previously put forward two proposals to acquire Bakkavor, with Bakkavor rejecting the deal on both occasions.
Greencore updates FY25 guidance
Greencore reported strong revenue and volume momentum for Q2, which it found was supported by continued growth with customers and new business during FY24.
Profit conversion during Q2 was ahead of management’s expectations and underpinned by ongoing operational and commercial excellence initiatives, as well as a “continued focus” on cost control.
The Group now anticipates its FY25 adjusted operating profit will be ahead of current market expectations and in the range of £112-£115 million.
