Ireland-based food supplier Greencore has reportedly made an improved offer in its attempt to take over UK peer Bakkavor.
News agency Bloomberg, quoting “people with knowledge of the matter” was unable to provide details of the improved bid but its sources said Bakkavor has been considering the new proposal.
Go deeper with GlobalData
Neither Greencore or Bakkavor, both suppliers to major UK supermarket groups, would comment on the story when their representatives were contacted by Just Food today (26 March).
On 14 March, Greencore, like Bakkavor listed in London, revealed it had tabled two offers for its rival in the previous fortnight.
The most recent rejected bid, put forward on 7 March, was a mix of cash and shares and valued Bakkavor at £1.14bn ($1.47bn at the time).
Under the terms of the offer, Greencore shareholders would own around 59.8% of the new company, with Bakkavor investors holding the remainder.
Greencore said at the time that bringing the two own-label suppliers together would create “a leading UK convenience-food business”.
But Bakkavor described the offers as “unsolicited, conditional, cash-and-share proposals”.
It added: “The board of Bakkavor, together with its financial advisers, carefully evaluated the latest proposal and concluded that it significantly undervalued the company and its future prospects.”
Greencore said after the last rejection that it would continue to evaluate all strategic opportunities, including a potential move for Bakkavor.
Asked by Just Food at the time if it would make a third bid, the company declined to comment but pointed to its belief that a combination of the businesses is “a highly compelling value creation opportunity for both Bakkavor and Greencore shareholders”.
In its report of another bid materialising, Bloomberg pointed out that the company is required to announce by 5pm. local time on 11 April whether it is going to make a firm offer or walk away.
Bakkavor makes products including ready meals and desserts for customers including Tesco.
In 2024, the company generated more than 80% of its £2.29bn underlying revenue in the UK but it also does business – and has factories – in the US and China.
Greencore supplies chilled, frozen and ambient food from 16 factories in the UK. The company’s customers include major UK grocers including Tesco, Sainsbury’s and Asda. In the group’s last full financial year, it took in £1.81bn in revenue.
