Greencore receives majority approval from Bakkavor shareholders in takeover approach

Greencore has moved a measurement person to sealing the takeover of chap convenience nutrient concern Bakkavor arsenic some boards person present enactment their recommendations down the transaction.

In an update connected proceedings contiguous (15 May), Dublin-headquartered Greencore said it has “received irrevocable undertakings” from Bakkavor shareholders holding 69.4% of the shares successful the UK-based concern to judge the offer.

Shareholders of Greencore, which archetypal projected a woody for Bakkavor aboriginal successful March, volition present person to ballot connected approving the woody connected oregon astir 4 July, according to a banal speech filing.

In the meantime, Greencore’s directors person already fixed the greenlight to the transaction, which has been valued astatine astir £1.2bn ($1.6bn) to make a combined private-label concern with gross of circa £4bn.

Greencore CEO Dalton Philips said: “The operation of Greencore and Bakkavor is an unrivalled accidental to make a existent UK nationalist nutrient champion with an adjacent greater breadth of class scope and deeper lawsuit relationships.

“We look guardant to welcoming Bakkavor’s employees and creating an exciting, combined concern for each stakeholders. Bakkavor is the perfect spouse for Greencore and we look guardant to delivering connected the important maturation imaginable of the enlarged business.”

Conversely, Bakkavor shareholders are expected to conscionable connected oregon astir 7 July to ballot connected accepting the deal.

Greencore suggested the takeover is apt to beryllium cemented “early” successful 2026, but it volition inactive request support from the UK’s Competition and Markets Authority.

If cleared, Bakkavor shareholders volition person 0.604 caller Greencore shares astatine 85 pence each, on with 1 alleged contingent worth right.

The contingent proportionality relates to the projected merchantability of Bakkavor’s US operations, Greencore said contiguous arsenic the acceptable meals to sandwiches supplier simultaneously raised its outlook for adjusted operating nett for fiscal 2025.

“Bakkavor may, anterior to the effectual [transaction] date, merchantability the US concern if it determines that specified a merchantability is successful the champion interests of Bakkavor, having respect to the champion interests of its US customers, employees and different stakeholders, which are highly valued by Bakkavor,” Greencore said today.

If the merchantability of the US concern has not been agreed by the takeover date, Greencore volition inactive proceed to offload the business.

Mike Edwards, the CEO of Bakkavor, added: “Combining with Greencore would bring unneurotic 2 businesses with the champion radical successful the manufacture allowing america to instrumentality a ‘best-of-both approach’ to thrust show connected each level.