Greencore, the UK’s biggest sandwich maker, has made a major move in the convenience food industry by reaching a £1.2bn agreement in principle to acquire rival company Bakkavor. This deal, which includes a combination of cash, shares, and dividend payout, is set to create a £4bn convenience food giant.

The acquisition of Bakkavor by Greencore is a strategic move that will not only strengthen their position in the market but also bring together two leading companies in the convenience food sector. This deal is a testament to the growth and success of both companies and their commitment to providing high-quality, convenient food options to consumers.

With this acquisition, Greencore will expand its product portfolio and gain access to Bakkavor’s wide range of products, including ready meals, pizzas, and desserts. This will allow Greencore to cater to a larger customer base and meet the growing demand for convenient and healthy food options.

The deal is also expected to bring significant cost savings and operational efficiencies for both companies. By combining their resources and expertise, Greencore and Bakkavor will be able to streamline their operations and drive growth in the highly competitive convenience food market.

The convenience food industry has seen a significant surge in demand in recent years, with more and more consumers opting for quick and easy meal options. This trend has been further accelerated by the ongoing pandemic, which has led to a rise in at-home dining. With this acquisition, Greencore is well-positioned to capitalize on this growing market and continue to provide innovative and convenient food solutions to its customers.

The agreement between Greencore and Bakkavor is subject to approval from the Competition and Markets Authority (CMA). However, both companies are confident that the deal will be approved, and the acquisition will be completed by the end of 2021.

The news of this deal has been met with positive reactions from industry experts and analysts. They believe that this acquisition will create a powerhouse in the convenience food sector, with a combined revenue of £4bn and a strong presence in both the UK and US markets.

Patrick Coveney, CEO of Greencore, expressed his excitement about the potential of this deal, stating, “This is a transformational moment for Greencore. The acquisition of Bakkavor will significantly enhance our scale, operational capabilities, and customer reach, creating a leading player in the UK convenience food market.”

The acquisition of Bakkavor is not the first major move by Greencore in recent years. In 2018, the company sold its US business to focus on its core UK market. This latest deal is a clear indication of Greencore’s commitment to growth and its confidence in the future of the convenience food industry.

In conclusion, the agreement between Greencore and Bakkavor is a significant development in the convenience food sector. It will create a powerhouse in the market, with a wide range of products and a strong presence in both the UK and US markets. This deal is a testament to the success and growth of both companies and their commitment to providing high-quality, convenient food options to consumers. With the approval of the CMA, we can expect to see a new and improved Greencore emerge in the near future.