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 LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the AgriFood sector (10.1x).

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