UK’s Bakkavor buys Haydens Bakery

UK-based Bakkavor Group has acquired Haydens Bakery from Real Good Food in a deal worth £12m ($15m).

The consideration is subject to adjustment in relation to levels of working capital and net debt that comprises £9.6m ($12.3m) in cash and £2.4m ($3.9m) of existing finance leases.

Founded in 1976, Haydens produces sweet bakery products, which are distributed across major grocery retailers and also provides a distribution operation for one of the UK’s leading retailers.

The company currently operates two sites in Devizes, Wiltshire, and has a workforce of approximately 480 employees.

The deal does not include Chantilly, a Devon-based patisserie facility, which produces hand-assembled frozen desserts.

Over the last 18 months, the bakery operations are reported to have transformed significantly in terms of production capacity, footprint expansion, and upgrade of equipment and infrastructure with an investment of £15m.

With the acquisition of Haydens, Bakkavor will enhance its in-store bakery offering and expand its desserts business, which will be combined with the ongoing major expansion of its facility in Newark in order to increase its capacity.

Bakkavor CEO Agust Gudmundsson 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.”

Haydens generated £31.3m of revenues during the financial year ending 31 March 2017.