Bakkavor acquires Haydens Bakery in strategic move to boost UK Desserts business
The deal will enable Bakkavor to grow its Desserts division based in Newark, which is currently undergoing a £20m ($25.8m) investment to create 300 jobs in the town.
Bakkavor manufacturers fresh prepared food in four categories - Meals, Salads, Desserts and Pizza & Bread – specifically for major UK retailers, including Tesco, M&S, Sainsbury’s and Waitrose, but also has a growing international presence in the US and China.
The group posted a rise in first-half profit and revenue.
For the 26 weeks to June 30, pre-tax profit rose 38.9% to £47.1m ($60.8m) on revenue of £910.4m ($1.17bn), up 0.8% from the year prior.
“[Haydens] is a business that 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,” said Agust Gudmundsson, CEO of Bakkavor.
Haydens was established in 1976 and produces sweet bakery products for major UK grocery retailers. The business operates from two sites in Devizes, Wiltshire, and has around 480 employees.
Capital investment of £15m ($19.3m) over the past 18 months has transformed the bakery’s operations, adding capacity, expanding its footprint and upgrading equipment and infrastructure.
For its financial year ended March 31, 2017, Haydens generated £31.3m ($40.4m) in revenue and was breakeven at the operating profit level.
The transaction excludes Chantilly, a Devon-based patisserie facility that produces hand-assembled frozen desserts.
