The publicly traded prepared food supplier Bakkavor has acquired the dessert company Blueberry Foods from Samworth Brothers.
Blueberry, based in Leicestershire, produces a range of desserts for major UK grocers with around 420 employees.
In the year ended December 31, 2018, Blueberry’s revenue was £ 42million and the company recorded a loss of £ 1million in EBITDA. In the past 18 months, it has invested more than £ 10million to expand its plant’s footprint.
Bakkavor said the agreement “consolidates our leadership position in chilled desserts, providing both additional capacity and new capabilities such as hot desserts”.
He also said there would be “operational synergies” by integrating Blueberry into its existing activities and further strengthening its dessert offering to the group’s two largest customers, both also customers of Blueberry.
The acquisition is expected to be finalized by mid-June 2019 and will be financed from existing facilities. Terms of the deal were not disclosed.
CEO Agust Gudmundsson commented: “The acquisition of Blueberry is an excellent strategic choice for Bakkavor. With the recent addition of Haydens Bakery and a major investment in our Newark site, our long-term commitment to growing our dessert category in the UK is clear.
“The Blueberry team shares our passion for delivering exceptional service, quality and value to customers and we look forward to welcoming them to the group. “