Greencore Moves to Acquire Bakkavor in £1.2 Billion Deal

Greencore, the UK’s largest sandwich manufacturer, is set to acquire rival Bakkavor in a potential £1.2 billion deal that could reshape the UK’s chilled food sector. The companies have reached an agreement in principle on a cash-and-shares offer that values Bakkavor at 200p per share. If finalised, the deal would create a food-to-go giant with an estimated combined value of £4 billion.

Under the proposed terms, Bakkavor shareholders would receive 85p in cash, 0.604 shares of Greencore for each Bakkavor share, and a final dividend of 4.8p. While the deal is still subject to due diligence and regulatory clearance, Bakkavor’s board has expressed unanimous support for the proposal, indicating it would recommend the offer once formally tabled.

The market responded promptly to the news—Bakkavor shares climbed 5.7% to 188p, while Greencore’s stock dipped slightly to 178p.

A Combined Force in Food-to-Go Innovation

The potential merger would bring together two of the UK’s most prominent players in the fresh and ready-to-eat food space. Greencore, headquartered in Dublin and listed in London, operates 14 UK factories and produces nearly 750 million food-to-go items each year, employing over 13,000 people. Bakkavor, based in London, adds considerable international reach, employing 18,000 staff across 42 sites in the UK, the United States, and China.

Upon completion, Greencore shareholders would own 56% of the merged entity, with Bakkavor investors holding the remaining 44%. The deal also includes a contingency clause offering Bakkavor shareholders additional payment should its US business be sold within a year post-acquisition.

Analysts at Jefferies view the move positively, citing strong prospects for cost efficiencies and synergy gains. “Firmly accretive” is how the deal was described, with analysts pointing to the advantages of scale and aligned operational capabilities.

If approved, the transaction could mark a turning point in the UK’s convenience food sector, positioning the new group as a global leader ready to meet growing consumer appetite for high-quality, ready-to-eat meals.