UK – Bakkavor Group plc, the leading provider of fresh prepared food, has announced the acquisition of Haydens Bakery Limited from Real Good Food PLC, a deal valued at US$13.9 million.
According to the company, the acquisition of Haydens increases the breadth and depth of our desserts range, extending our offering in in-store bakery, as well as supports growth in the Desserts business, which, combined with the ongoing major expansion of our facility in Newark, will provide increased and high quality capacity, as well as state-of-the-art automation.
It added that it also expected to realise meaningful operational synergies by incorporating Haydens into the existing business.
Established in 1976, Haydens is a leading manufacturer of sweet bakery products for the major UK grocery retailers and provides a distribution operation for one of the UK’s leading retailers.
The business operates from two sites in Devizes, Wiltshire, and has c.480 employees.
Capital investment of US$17.37 million over the last 18 months, according to Bakkavor, has now transformed the bakery operations, adding significant capacity, expanding the existing footprint and upgrading equipment and infrastructure.
In the financial year ended 31 March 2017, Haydens generated US$36.7 million of revenues and was break-even at the operating profit level.
Total consideration is US$13.9 million, subject to adjustment in relation to levels of working capital and net debt, comprising of US$11.92 million in cash and US$2.78 million of existing finance leases.
“We are pleased to welcome Haydens to the Bakkavor Group. It is a business which shares Bakkavor’s passion for providing outstanding service, quality and value to its customers and has a reputation for supplying some of the best tasting sweet treats to the UK’s leading retailers.
This acquisition will grow both our capacity and product offering in the Desserts category, and we are delighted to be welcoming Haydens’ management and the wider team to our business,” commented Agust Gudmundsson, Chief Executive Officer of Bakkavor on the acquisition.