Greencore to Acquire Bakkavor in £1.2 Billion Deal

UK convenience food giant Greencore Group has announced a major move to acquire Bakkavor Group, a leading supplier of fresh prepared foods, in a deal valued at £1.2 billion (approximately $1.59 billion).

Under the terms of the proposed acquisition, Bakkavor shareholders will receive 85 pence in cash and 0.604 new Greencore shares for each Bakkavor share, an offer that values Bakkavor at 200 pence per share and represents a significant premium over its recent market value.

If approved, the merger will create one of the largest fresh food companies in the UK, with combined annual revenues nearing £4 billion and a workforce of over 30,000 people.

Greencore expects to achieve at least £80 million in annual cost savings within three years of completing the deal. The transaction is still subject to regulatory approval and a vote by shareholders from both companies.

The acquisition comes as Bakkavor continues its efforts to streamline operations across the UK, U.S., and China, amid rising costs and evolving consumer demands.