Bakkavor share holders are to be recommended to accept a potential takeover by Greencore
Both food firms have premises in South Holland, Greencore in Pinchbeck and Bakkavor in Spalding, Holbeach St Marks and Sutton Bridge.
A statement released by Greencore on Tuesday morning (April 2) says the company hopes ‘to create a leading UK Convenience food business with a combined revenue of £4 billion’.
It continues that Bakkavor will recommend its share holders vote the sale of the company through.
They are being offered 85p for every share and a 0.604 per cent share in Greencore.
“Greencore shareholders would own approximately 56 per cent and Bakkavor shareholders would own approximately 44 per cent of the combined group,” the statement continues. “Agust Gudmundsson and Lydur Gudmundsson, currently non-executive directors of Bakkavor, would join the board of the combined group as non-executive directors.
The statement continues that any merger will lead to ‘substantial synergies’.
“These synergies are expected to be generated from the longer-term value of business opportunities which can be fully accessed through the combination of the companies’ complementary businesses, supported by the integration and improved utilisation of their manufacturing, distribution, purchasing and administrative functions.
“Greencore and Bakkavor are currently undertaking an exercise to validate the quantity of synergies which they believe will arise from the possible offer and intend to publish their estimated quantity of any synergies together.”
