Bakkavor sweetens its offering with dessert business acquisition
By Duncan Ferris
Date: Thursday 16 May 2019
(Sharecast News) - Bakkavor said on Thursday that it has agreed to buy desserts business Blueberry Foods from Samworth Brothers Limited for an undisclosed sum.
The FTSE 250 food manufacturer said the acquisition, which will be funded from existing facilities, is "a strong strategic fit" and will provide additional cold dessert capacity, new hot desserts capabilities and serve to strengthen the desserts offer to its two largest customers, both of whom are also important customers of Blueberry.
Blueberry, which operates from a custom-built facility in Leicestershire with approximately 420 employees, produces a range of sweet treats for some of the UK's leading grocery retailers. The pudding specialist has expanded its factory footprint and upgraded equipment in the last 18 months following capital investment of more than £10m.
Agust Gudmundsson, chief executive 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."
The deal is expected to complete by mid-June
Bakkavor's shares were up 1.11% at 127.40p at 0925 BST.
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