Bakkavor offloads Chinese operations in £50m deal
Bakkavor, a fresh food producer with sites across the East Midlands, has agreed to sell its Chinese business in a £50m deal.
Bakkavor China has now been sold to Lihe Xing (Qingdao) Food Technology Co, part of Lihoo’s Food Industry group.
The deal involves the full sale of Bakkavor China, which operates seven factories, employs around 2,300 people, and generated £105m in revenue in FY24.
Sale proceeds aim to reduce group debt and support Bakkavor’s aim to boost its profit margin to 6%, with a £15m profit expected from the transaction.
The cash deal is around £50m and is expected to close in the second half of 2025, pending regulatory approval.
Mike Edwards, CEO at Bakkavor said: “Over the last 20 years, we have built a great business in China and I would like to thank all our China colleagues for their contribution to the significant progress we have made in recent years. With strong foundations in place, we are confident that going forward, the business and its stakeholders will benefit from Lihoo’s local expertise and experience as a frozen and fresh meal manufacturer. We remain focused on delivering the great service our customers are accustomed to whilst we work towards completion.”
After initially rejecting Greencore’s offer in March, Bakkavor now appears to be on board with a deal that could create a £4bn-revenue food giant.
