British provider of fresh prepared food Bakkavor Group has announced the acquisition of Haydens Bakery Limited from Real Good Food PLC for GBP12m.
For Bakkavor, the acquisition of Haydens increases the breadth and depth of their desserts range, extending their offering in their in-store bakery, the company says.
The acquisition also supports growth in its dessert business, which, combined with the ongoing major expansion of the facility in Newark, will provide increased capacity, as well as state-of-the-art automation, according to Bakkavor.
Established in 1976, Haydens is a 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 around 480 employees.
Capital investment of GBP15m over the last 18 months has 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 GBP31.3m of revenues and was break-even at the operating profit level.
Total consideration is GBP12m, subject to adjustment in relation to levels of working capital and net debt. This comprises GBP9.6m in cash and GBP2.4m of existing finance leases.
Commenting on the acquisition, Agust Gudmundsson, CEO 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.”