Greencore completes £1.2 billion Bakkavor takeover deal
Convenience food manufacturer Greencore has completed its £1.2 billion deal to snap up fellow supermarket supplier Bakkavor.
The Ireland-headquarted, London-listed firm completed the deal, which was first agreed in May last year, after receiving court approval yesterday.
It comes after the firms had to address concerns from the UK's competition regulator that the move could result in the "substantial lessening of competition" for the supply of chilled supermarket sauces, which could push up prices.
As a result, Greencore said it would sell its only chilled soup and sauces plant in Bristol to the Compleat Food Group.
Earlier this week, Compleat confirmed that it had finalised the acquisition of the business.
The tie-up between Greencore and Bakkavor, structured as a reverse takeover, will form a combined food group with annual sales of about £4 billion which supplies many of the UK's biggest supermarkets and retailers.
Dalton Philips, chief executive of Greencore, said the firm has been putting in place plans to integrate the two businesses effectively in recent months.
"We are proud today to bring together two great companies to create a UK national convenience food champion. In Greencore's centenary year this is another milestone in a remarkable story," he said.
"I'd like to thank the hard work of the teams at Greencore and Bakkavor that made this combination happen, while continuing to deliver great food for our customers every day," he said.
"With a comprehensive convenience food portfolio across "food for now" and "food for later" we're really excited by the prospects for our business, and all we can offer our customers and colleagues," he added.
Bakkavor's retail customers include Tesco, Marks & Spencer and Waitrose, while Greencore supplies all major UK supermarkets and is the biggest pre-packed sandwich maker in the UK.
