American Hedge Fund Invests £163 Million in Bakkavor Group
Baupost Group, a Boston-based US hedge fund, has invested £163 million in acquiring a stake in Bakkavor Group, the UK’s biggest prepared fresh foods supplier. Bakk AL Holdings, a company owned by brothers Agust and Lydur Gudmundsson, respectively chief executive and chairman of Bakkavor, will continue to control approximately 89% of the outstanding shares group.
There will be no changes to day to day operations of Bakkavor, the management board or other senior management positions.
Agust Gudmundsson comments: “I am delighted to welcome The Baupost Group to Bakkavor. They are globally recognised as highly successful long term investors and are supportive of the company’s continued expansion plans.”
Bakkavor employs over 18,000 people globally and produces over 5,500 products in 18 different categories. In the UK, it is the number one producer by value in 13 of the 16 categories of chilled food it supplies to the market. Products include ready meals, pizzas, salads, desserts, soups and sauces.
Customers include some of the UK’s best known grocery retailers including Tesco, Marks & Spencer, Sainsbury’s, Waitrose, Asda and Morrisons. Bakkavor also has operations in Continental Europe, the US and Asia, supplying fresh prepared food products to both retail and foodservice customers.
