Greencore and Bakkavor agree terms of £1.2bn acquisition deal

Greencore have formally agreed terms for the £1.2 billion acquisition of Bakkavor that will create a major new force in the UK’s convenience food sector. The deal, announced today, will combine two of the country’s largest chilled food producers into a single group with combined annual revenues approaching £4 billion.

The merged company will bring together Greencore’s expertise in food-to-go with Bakkavor’s strength in ready meals and fresh prepared foods, serving major supermarkets including Tesco, M&S and Sainsbury’s.

Upon completion, Greencore shareholders will own approximately 56 percent of the combined business, with Bakkavor shareholders holding the remaining 44 percent.

The agreement follows months of negotiations and several earlier rejected bids by Greencore, the first of which was made on 25 February 2025. A revised offer, amounting to 85p per Bakkavor share plus 0.604 new Greencore shares – equating to 200p per share – was ultimately accepted in April. The deal remains subject to shareholder and regulatory approval.

Chair and CEO approvals

Bakkavor Chair Simon Burke said the board was united in its support for the deal: “Having considered a combination previously, we believe that this transaction now proposes terms that we consider are very attractive to Bakkavor’s shareholders.” He added, “The transaction offers shareholders a significant premium, with an attractive combination of cash on completion and the ability to participate in the future value creation anticipated from bringing the two businesses together.”

Greencore CEO Dalton Philips described the acquisition as “an unrivalled opportunity to create a true UK national food champion with an even greater breadth of category range and deeper customer relationships.” He emphasised that the combination of Greencore’s “food for now” and Bakkavor’s “food for later” portfolios would enable the new group to serve more meal occasions across the day.

Leslie Van de Walle, Chair of Greencore, said: “We have long admired Bakkavor and we are pleased to announce a transaction that will create a true UK leader in convenience food.” He added: “We are excited about the potential that a combination presents and the value it will deliver for both Greencore and Bakkavor shareholders.”

Both companies have strong operational footprints in the East Midlands, with Greencore maintaining a major presence in Worksop and Bakkavor operating several facilities across the region.

Mike Edwards, Bakkavor’s CEO, said the deal would benefit all stakeholders: “The combined business will create more opportunities for colleagues, allow us to do an even better job for customers, and be even more resilient. I am confident that the relentless focus that both businesses have on quality, service and innovation will remain at the heart of the bigger business.”