East Mids food manufacturer to raise £100m from flotation
A food supplier giant which has its regional head office in the East Midlands is set to float on the London Stock Exchange, it confirmed this morning (10 October).
Bakkavor, which makes desserts in the region and has factories in Newark, Bourne and Spalding said it hopes to raise £100m, which it says it will invest back into the business and pay down debt.
For the year-ending 31 December 2016 Bakkavor turned over £1.76bn. The firm’s customers include Tesco, Marks & Spencer, Sainsbury’s and Waitrose. Last week it was revealed that Bakkavor could be set to creative nearly 300 jobs in Newark after revealing plans for a £20m extension at its factory in the town.
Agust Gudmundsson, chief executive of Bakkavor, said: “We are delighted to be listing Bakkavor at a very exciting time for the Group. Our passion for making the best tasting fresh prepared food, underpinned by our expertise and our focus on innovation, has made us the clear leader in an attractive and fast-growing market.
“We have long-established relationships with the UK’s leading food retailers and our quality products are core in their efforts to gain greater exposure in the exciting fresh convenience sector. We have a long track record of delivering sustainable growth in both revenue and profits and there is considerable momentum right across the Group. Our experienced management team has the ability and ambition to ensure we can further strengthen our position in the UK while accelerating our international growth ambitions.
“This IPO will enable us to continue to invest to ensure we create value for all investors and stakeholders, and bring more great tasting food to our customers. I am hugely proud of what has been achieved to date at Bakkavor and look forward to leading the business through the years to come.”