Greencore aims to close in January the acquisition of Bakkavor, an operation from 1,4 billion euros The Irish group, specializing in sandwiches and ready meals, plans to complete the takeover. in mid-January, following the green light from the British antitrust authority (CMA). A key step was the regulatory body's approval of Greencore's proposal to sell the Bristol plant, which produces refrigerated soups and sauces, to address competition concerns.
According to the indicative timetable of the operation, Bakkavor shares will be suspended from trading on January 16 and the company will be delisted from the London Stock Exchange on January 19The sale of the Bristol production site to Compleat Food Group helped avoid a more in-depth antitrust investigation. In October, in fact, the CMA had expressed concerns about the impact of the merger on the segment of refrigerated sauces, granting the two companies a short deadline to identify appropriate remedies.
The deal, announced in April, will create a convenience food giant in the UK with combined revenues of approximately £4 billion. Greencore's current shareholders will hold 56% of the new group, while Bakkavor's shares the remaining 44%. The two companies share a large part of their customers – from large supermarkets such as Tesco, Marks & Spencer, Sainsbury's, Waitrose and Asda – but they present a largely complementary offering. Bakkavor brings with it pizza, bread, desserts and dips, which join the Greencore range already focused on sandwiches, salads, sushi and ready meals.
Founded about 40 years ago by Icelandic brothers Agust and Lydur GudmundssonBakkavor's history is intertwined with Greencore: in 2008, at the height of the financial crisis, the Gudmundsson family sold its stake in Greencore amid severe pressure on its industrial empire. With the closing now imminent, the British convenience food sector is preparing for a new structure, marked by greater concentration and a player of unprecedented size.
