# Bakkavor Group plc Acquisition of Blueberry Foods in the UK desserts category

- Link: https://www.directorstalkinterviews.com/bakkavor-group-plc/412782584
- Published: 2019-05-16T10:06:27+01:00
- Author: Charlotte Edwards

**Bakkavor Group plc** (LON:BAKK), the leading provider of fresh prepared food, 
today announced that it has entered into an agreement to purchase the trade and 
assets of Blueberry Foods, a desserts business owned by Samworth Brothers Limited.

Blueberry operates from a custom-built facility in Leicestershire with approximately
420 employees and produces a range of desserts for the UK’s leading grocery retailers.
A capital investment of more than £10m over the last 18 months has expanded the 
factory footprint and upgraded equipment to deliver new capabilities and competencies.
In the financial year ended 31 December 2018, revenues were £42m and the business
made a loss of £1m at an EBITDA level.

The acquisition of Blueberry is a strong strategic fit and will:

 * build on our leading position in chilled desserts, providing both additional 
   capacity and new capabilities such as hot desserts;
 * bring operational synergies over the medium term as we incorporate Blueberry 
   into our existing business.
 * further strengthen our desserts offer to our two largest customers, both of whom
   are also important customers of Blueberry

The acquisition is conditional on completion of a TUPE process with affected employees
and of other customary pre-closing conditions. It is expected to complete by mid-
June 2019 and will be funded from existing facilities, with marginal leverage impact.

> **Commenting on the transaction, Agust Gudmundsson, Chief Executive Officer of
> Bakkavor, said:**
> “The acquisition of Blueberry is a great strategic fit for Bakkavor. Together 
> with our recent addition of Haydens Bakery and a major investment at our site 
> at Newark, our long-term commitment to growing our desserts category in the UK
> is clear. The team at Blueberry share our passion for providing outstanding service,
> quality and value to customers and we look forward to welcoming them to the Group.”

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