Acquisition

RNS Number : 1810Z

Bakkavor Group PLC

16 May 2019

 

16 May 2019

Bakkavor Group plc

Acquisition of Blueberry Foods in the UK desserts category

Bakkavor Group plc ("Bakkavor" or "the Group"), the leading provider of fresh prepared food, is pleased to announce that it has entered into an agreement to purchase the trade and assets of Blueberry Foods ("Blueberry"), a desserts business owned by Samworth Brothers Limited ("Samworth").

Blueberry operates from a custom-built facility in Leicestershire with approximately 420 employees and produces a range of desserts for the UK's leading grocery retailers. A capital investment of more than £10m over the last 18 months has expanded the factory footprint and upgraded equipment to deliver new capabilities and competencies. In the financial year ended 31 December 2018, revenues were £42m and the business made a loss of £1m at an EBITDA level.

The acquisition of Blueberry is a strong strategic fit and will:

-       build on our leading position in chilled desserts, providing both additional capacity and new capabilities such as hot desserts;

-       bring operational synergies over the medium term as we incorporate Blueberry into our existing business.

-       further strengthen our desserts offer to our two largest customers, both of whom are also important customers of Blueberry

The acquisition is conditional on completion of a TUPE process with affected employees and of other customary pre-closing conditions. It is expected to complete by mid-June 2019 and will be funded from existing facilities, with marginal leverage impact.

Commenting on the transaction, Agust Gudmundsson, Chief Executive Officer of Bakkavor, said:

"The acquisition of Blueberry is a great strategic fit for Bakkavor. Together with our recent addition of Haydens Bakery and a major investment at our site at Newark, our long-term commitment to growing our desserts category in the UK is clear. The team at Blueberry share our passion for providing outstanding service, quality and value to customers and we look forward to welcoming them to the Group."

ENQUIRIES

Institutional investors and analysts:

Peter Gates, Chief Financial Officer                                                                                       

Sally Barrett-Jolley, Head of Corporate Affairs                                                              [phone]

Media enquiries:

Tulchan Communications                                                                                              [phone]

DISCLAIMER - FORWARD-LOOKING STATEMENTS

This statement may contain forward-looking statements about the Group. Forward-looking statements involve uncertainties because they relate to events, and depend on circumstances, that will, or may, occur in the future. If the assumptions on which the Group bases its forward-looking statements change, actual results may differ from those expressed in such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update these forward-looking statements. Nothing in this statement should be construed as a profit forecast. Some numbers and period on period percentages in this statement have been rounded or adjusted in order to ensure consistency with the financial information.

LEI number: 213800COL7AD54YU9949

 

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