Greencore secures deal on £1.2bn Bakkavor takeover

(Sharecast News) - Convenience food maker Greencore has secured agreement to buy UK fresh food provider Bakkavor in a £1.2bn deal, the two companies said on Thursday. The offer is 0.604 new Greencore shares and 85p a share in cash, valuing each Bakkavor share at 200p. Greencore said there was scope for more value if there is a sale of Bakkavor's US business.

Earlier in April, the companies said they had reached a preliminary agreement on the cash/shares offer after Bakkavor rejected two previous bids.

The deal will see Greencore control 56% of the combined group, with Bakkavor shareholders retaining the remaining stake. The new company will have a combined revenue of £4bn.

Reporting by Frank Prenesti for Sharecast.com