Connect with us

Hi, what are you looking for?

Metaverse CapitalistsMetaverse Capitalists

Business

UK’s biggest sandwich maker Greencore agrees deal to create £4bn convenience food giant

Greencore, the UK’s largest sandwich manufacturer, has agreed a potential £1.2 billion deal to acquire rival Bakkavor, in a move that would create a £4 billion food-to-go powerhouse.

The two companies confirmed they have reached an agreement in principle for a cash-and-shares offer valuing Bakkavor at 200p per share. Under the proposed terms, Bakkavor shareholders would receive 85p in cash and 0.604 Greencore shares for each Bakkavor share, in addition to the final dividend of 4.8p a share.

The agreement follows two earlier bids from Greencore that Bakkavor rejected. However, Bakkavor’s board has now indicated it would be “minded to recommend” the new proposal unanimously, should Greencore make a formal offer.

Shares in Bakkavor rose by 5.7 per cent to 188p on the news, while Greencore shares edged down slightly to 178p.

The proposed deal remains subject to due diligence and regulatory approvals, but both parties see significant potential from combining operations — particularly in realising “substantial synergies” and economies of scale across their UK and international food-to-go operations.

Greencore, headquartered in Dublin and listed in London, operates 14 factories in the UK, producing nearly 750 million food-to-go items a year and employing around 13,300 people. Bakkavor, headquartered in London, is a major supplier of freshly prepared foods, employing 18,000 staff across 42 sites in the UK, US and China.

The merged group would see Greencore shareholders owning 56 per cent of the combined entity, with Bakkavor investors holding the remaining 44 per cent.

The deal also includes a contingent payment mechanism for Bakkavor shareholders, should the company’s US business be sold within a year of the transaction’s completion.

Analysts at Jefferies said the potential benefits of increased scale and improved operational efficiencies could make the deal “firmly accretive”.

If completed, the acquisition would reshape the UK’s chilled and convenience food landscape — creating a manufacturing giant well-positioned to meet rising consumer demand for fresh, ready-to-eat meals in both domestic and global markets.

Read more:
UK’s biggest sandwich maker Greencore agrees deal to create £4bn convenience food giant

    You May Also Like

    Stocks

    In this edition of StockCharts TV‘s The Final Bar, Dave shows how breadth conditions have evolved so far in August, highlights the renewed strength in the...

    Business

    In the UK, the care sector is under incredible strain, it’s good to know there are people working hard to address the issue. One...

    Business

    With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike the right chord...

    Politics

    On January 10, the French government announced plans to raise the retirement age from 62 to 64. The change would mean that after 2027,...

    Dislaimer: pinnacleofinvestment.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 metaversecapitalists.com | All Rights Reserved