Finance
UK food group Greencore seals $1.6 billion Bakkavor deal
Published by Global Banking & Finance Review®
Posted on May 15, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 15, 2025
2 min readLast updated: January 23, 2026
Greencore has agreed to acquire Bakkavor for $1.6 billion, reshaping the UK food industry. The deal includes a cash and share offer, with Greencore and Bakkavor forming a combined entity.
(Reuters) -Convenience food manufacturer Greencore said on Thursday it had agreed to the terms of a recommended acquisition of UK fresh food provider Bakkavor Group, in a deal valued at 1.2 billion pounds ($1.59 billion).
In April, the parties said they had reached an agreement in principle on the key financial terms of a possible cash and share offer by Greencore for Bakkavor.
The offer base consideration comprises 0.604 new Greencore shares and 85 pence in cash, valuing each Bakkavor share at 200 pence, with potential for further value if there is a sale of Bakkavor's U.S. business, Greencore Group said on Thursday.
Bakkavor, which sells products such as soups, dips, salads, desserts, pizzas and breads, had been reshaping its businesses across the UK, China and the U.S. to cope with steep costs, subdued consumer demand and reduced volumes.
Bakkavor's retail customers include Tesco, M&S and Waitrose, while Greencore supplies all major UK supermarkets.
Greencore has received binding commitments from certain Bakkavor shareholders, who have committed to sell about 69.4% of all Bakkavor shares, it said.
On completion of the deal, Greencore shareholders are expected to hold about 56% and Bakkavor shareholders will own around 44% of the combined entity.
($1 = 0.7528 pounds)
(Reporting by Chandini Monnappa in Bengaluru; Editing by Eileen Soreng)
The main topic is Greencore's acquisition of Bakkavor for $1.6 billion, impacting the UK food industry.
The deal includes a cash and share offer, valuing each Bakkavor share at 200 pence.
The major players are Greencore and Bakkavor, both significant entities in the UK food sector.
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