Convenience foods manufacturer Greencore’s mission to acquire Bakkavor, the manufacturer of fresh prepared food, has taken a key step forward, with the businesses reaching an agreement in principle on the key financial terms of a possible cash and share offer.
The £1.2 billion deal bringing the companies together would create a leading UK convenience food business with a combined revenue of £4 billion.
Under the terms of the offer, Bakkavor shareholders would be entitled to receive 85 pence in cash for each Bakkavor share and 0.604 Greencore shares.
Greencore shareholders would own approximately 56% and Bakkavor shareholders would own approximately 44% of the combined group.
Following the rejection of previous bids from Greencore, which has its UK head office in Worksop, the board of Bakkavor has now indicated that the key financial terms represent a value it would be minded unanimously to recommend to Bakkavor shareholders.
