Greencore set to take a £1.2bn bite out of Bakkavor

Ready-meal and food-to-go supplier Greencore, which has a major base in Worksop, looks to have agreed a £1.2bn deal to take over rival Bakkavor, which has sites across the East Midlands.

The deal, if voted through by shareholders, would see Greencore shareholders own around 56% and Bakkavor shareholders approximately 44% of the combined group.

The new company would have a combined revenue of £4bn.

According to a statement from Greencore this morning (April 2), Bakkavor’s board is set to recommend the new offer to its shareholders, who would receive 85p for each share they hold and 0.6 Greencore shares.

The companies have noted that the deal would bring “synergies” in their manufacturing, distribution, purchasing and administrative functions, but have not explicitly proposed any redundancies.

A statement said: “The board of Greencore has indicated to Bakkavor that it would be minded to unanimously recommend the key financial terms to Greencore’s shareholders subject to agreement on all other terms and conditions of the offer and definitive transaction documentation being agreed.

“A further announcement will be made when appropriate.”

The news comes after an initial £1.1bn offer from Greencore An initial proposal was turned down by Bakkavor’s board on February 27, with a second, revised offer also dismissed on March 10, as it “significantly undervalued the company and its future prospects”.