Prime Highlights
- Greencore has successfully completed its £1.2 billion takeover of Bakkavor, creating a major force in the UK convenience food sector.
- The merger brings together two leading food suppliers, expanding product choice and strengthening service for major supermarkets across the UK.
Key Facts
- The deal received final approval after Greencore agreed to sell its chilled soup and sauces factory in Bristol to address competition concerns.
- The combined Greencore–Bakkavor group is expected to generate around £4 billion in annual sales, supplying many of the UK’s largest retailers.
Background:
Greencore has officially completed its £1.2 billion acquisition of fellow supermarket supplier Bakkavor, marking one of the most significant deals in the UK convenience food sector in recent years. The transaction, which was first agreed in May last year, received final court approval on Thursday, allowing the two companies to move forward as a single, expanded food group.
The deal was closely reviewed by the UK competition regulator, which was concerned the merger could reduce competition in the chilled soup and sauce market and push prices higher. To resolve this, Greencore agreed to sell its chilled soup and sauces factory in Bristol. The facility has since been acquired by the Compleat Food Group, which confirmed earlier this week that the transaction had been completed.
With the regulatory conditions now satisfied, Greencore and Bakkavor will combine operations through a reverse takeover structure. The newly formed group is expected to generate annual revenues of around £4 billion and will supply a wide range of convenience food products to many of the UK’s largest supermarkets and retailers.
The merger brings together two well-established names in food manufacturing, each with strong expertise in ready meals, chilled foods, and “food for now” and “food for later” categories. Industry observers say the tie-up strengthens the group’s ability to serve changing consumer demand while improving efficiency across production and distribution.
Greencore chief executive Dalton Philips said the company has spent recent months preparing detailed plans to ensure a smooth integration of the two businesses. He described the completion of the deal as a landmark moment, particularly as it coincides with Greencore’s centenary year.
Philips said the merged company plans to become a leading convenience food business in the UK, with a wider range of products and improved service for customers, while also opening up new opportunities for staff.
The completed takeover reflects growing confidence in the UK food manufacturing industry and shows how companies are joining forces to stay competitive as costs rise and consumer tastes continue to change.
