FDBusiness.com

Bakkavor Group, the leading provider of fresh prepared food in the UK, is acquiring Blueberry Foods, a desserts business owned by Samworth Brothers for an undisclosed price. 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 £10 million 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 £42 million and the business made a loss of £1 million at an EBITDA level.

The acquisition of Blueberry is a strong strategic fit and will build on Bakkavor’s leading position in chilled desserts, providing both additional capacity and new capabilities such as hot desserts. It will also bring operational synergies over the medium term as Bakkavor incorporates Blueberry into its existing business. Furthermore the acquisition will strengthening Bakkavor’s desserts offer to its two largest customers, both of whom are also important customers of Blueberry.

The acquisition is expected to complete by mid-June 2019 and will be funded from existing facilities, with marginal leverage impact.

Agust Gudmundsson, chief executive of Bakkavor, comments: “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.”