Greencore Group PLC (LSE:GNC) has agreed a £1.2 billion deal to buy Bakkavor in a move that would create one of the UK’s largest producers of convenience food, bringing together two of the sector’s biggest names.
The proposed acquisition values Bakkavor shares at 200p each, offering a 32.5% premium to the closing price before talks were made public.
Shareholders will receive 85p in cash and 0.604 new Greencore shares per Bakkavor share, with potential for more if Bakkavor’s US business is sold.
Dublin-headquartered Greencore supplies sandwiches, salads and ready-to-eat meals to supermarkets and foodservice customers.
Bakkavor makes prepared meals, pizza, dips, desserts and salads, often under own-label contracts for UK grocers.
The combined group would generate around £4 billion in annual sales and employ over 30,000 people, creating a food manufacturer with stronger market reach, broader product range and deeper customer ties.
Greencore shareholders would hold 56% of the merged company.