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05/2025

BAKKAVOR GROUP acquired by GREENCORE GROUP

UNITED KINGDOM Food Processing / Food Products EV 1b - 4b GBP

Context

Greencore has entered into a definitive agreement to merge with Bakkavor, creating a combined UK national food champion with pro-forma revenues of circa £4 billion. The strategic rationale for the deal is the creation of an unrivalled convenience food platform with enhanced category depth and deeper retail relationships. The combination aims to deliver annual run-rate pre-tax cost synergies of at least £80 million by the end of the third year through manufacturing consolidation and procurement efficiencies. As part of the transaction, Bakkavor's US operations are slated for divestment, either before or after completion, while its China business has already been marked for sale. This merger represents a major consolidation of the UK private-label food sector, allowing the enlarged group to leverage "best-of-both" operational expertise to drive resilience and performance in a highly competitive grocery landscape.

BAKKAVOR GROUP, which reported an EBITDA margin of in 2024, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (10.7x).

-> Deep-dive in AgriFood market trends

Target

Founded in 1986, Bakkavor is a leading international manufacturer of fresh prepared foods (FPF). The company’s business model focuses on high-frequency, short-shelf-life products across four main categories: meals (ready meals, soups, and pasta), salads (prepared salads and leafy salads), desserts, and pizza & bread. Its value proposition is built on deep strategic partnerships with major UK grocery retailers, providing private-label solutions that drive consumer convenience. Historically, the organization has maintained a significant global footprint with operations in the UK, US, and China, though it has recently initiated a strategy to divest non-core international assets to focus on its market-leading UK position. By operating a complex, just-in-time manufacturing and logistics network, the firm serves as a mission-critical supplier for the daily food requirements of millions of consumers.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2024
2023

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REFERENCES

Valuation range: EV 1b - 4b GBP

Revenue range: 1b - 3b GBP

EBITDA range: 100M - 200M GBP

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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: bakkavor group

Acquirer: greencore group