A landmark acquisition in the food manufacturing industry has been finalized, as Greencore secures its purchase of Bakkavor for £1.2 billion. This strategic move reshapes the convenience food sector, positioning the merged entity as a dominant force with anticipated revenues close to £4 billion. Initially met with resistance from Bakkavor’s board, who deemed earlier offers undervalued, negotiations culminated in an agreement that reflects a 32.5% premium over Bakkavor’s previous share price. Known for supplying major retailers like Marks & Spencer and Tesco, Bakkavor brings significant market presence and international reach to the table. The acquisition promises substantial synergies through enhanced operational efficiencies and innovation capabilities, while also ensuring strong governance during the transition.

On April 2, 2025, Bakkavor agreed to accept Greencore’s revised offer after several rounds of negotiation spanning late February to early March. Initially proposing a lower valuation, Greencore adjusted its terms following feedback from Bakkavor’s directors, who had initially rejected the deal due to concerns about underestimating the company’s worth. Under the final agreement, Bakkavor shareholders will receive both cash and shares in Greencore, reflecting confidence in the long-term value of the merger.

Bakkavor’s reputation rests on its expertise in fresh prepared foods, catering to leading UK retailers and expanding into global markets such as the US and China. With reported revenues exceeding £2.3 billion, primarily driven by its domestic operations, the company represents a valuable addition to Greencore’s portfolio. By combining forces, the two entities aim to leverage their collective strengths in manufacturing, distribution, and supply chain management, creating opportunities for cost savings and operational improvements.

Looking ahead, the integration process is expected to yield tangible benefits for all stakeholders involved. Greencore envisions harnessing economies of scale to bolster investments in critical areas such as infrastructure, sustainability, and automation. Furthermore, the inclusion of Agust Gudmundsson and Lydur Gudmundsson onto the board of the new group ensures continuity and strategic alignment during this pivotal phase. These moves underscore a commitment to fostering growth and delivering enhanced value across the convenience food landscape.

This acquisition not only solidifies Greencore’s position within the food and beverage manufacturing sector but also aligns with broader industry trends emphasizing consolidation and efficiency. As the newly formed entity embarks on its journey, it sets the stage for increased competitiveness, greater market capitalization, and improved liquidity, ultimately benefiting consumers and investors alike in the evolving convenience food market.