Bakkavor Group plc, the leading provider of fresh prepared food, has acquired Haydens Bakery Ltd from Real Good Food plc for £12m.
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 £15m over the last 18 months has now transformed the bakery operations, adding significant capacity, expanding the existing footprint and upgrading equipment and infrastructure.
For Bakkavor, the acquisition of Haydens:
• increases the breadth and depth of its desserts range, extending the offering in in-store bakery;
• supports growth in its Desserts business, which, combined with the ongoing major expansion of the facility in Newark, will provide increased and high quality capacity, as well as state-of-the-art automation; and
• is expected to realise meaningful operational synergies by incorporating Haydens into its existing business.
In the financial year ended 31 March 2017, Haydens generated £31.3m of revenues and was break-even at the operating profit level.
Total consideration is £12m, subject to adjustment in relation to levels of working capital and net debt. This comprises £9.6m in cash and £2.4m of existing finance leases.
Agust Gudmundsson, Chief Executive Officer of Bakkavor, said, “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.”