UK ready meals firm Bakkavor has announced its intention to float on the London Stock Exchange.
In a widely-anticipated move, the London-based firm confirmed its intention to proceed with an initial public offering (IPO) and said it expects that admission will occur in November. Some analysts are suggesting it could raise GBP100m (US$131.6m) by floating.
Last week the firm named former Hamleys toy store boss Simon Burke as its new chairman – an independent chairman being a pre-condition of gaining a listing – while UK newspapers, anticipating the IPO announcement, suggested the company could be valued at GBP1.5bn.
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London-based Bakkavor produces meals, salads, desserts, pizza & bread and claims to have had a 30% share of the UK FPF (fresh prepared food) market by revenue in 2016.
It quotes research suggesting the UK FPF market is expected to grow at a CAGR of approximately 5% in the four years to the end of 2019.
Bakkavor’s customers include some of the UK’s leading grocery retailers, including Tesco, Marks & Spencer, Sainsbury’s and Waitrose. Its international segment operates in the US and China.
The group has a total of approximately 19,000 employees, operating 26 factories in the UK, three in the US and eight in China.
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By GlobalDataBakkavor said that immediately following admission to the stock excahnge, it intends to have a free float of at least 25% of the issued share capital. The founders and Baupost will remain significant shareholders in the group.
Chairman-elect Burke said: “Over the past 30 years Bakkavor has grown to become the clear leader in the UK market for fresh prepared foods and a vital partner for retailers and food service companies.
“Through that time the business has retained its entrepreneurial edge, while putting in place a hugely experienced management team with strength in depth across manufacturing, supply chain and innovation.
“I have been impressed by the significant growth that Bakkavor has delivered as a private company.
“Now, with solid foundations in place for the next stage of the company’s development, Bakkavor is excellently positioned to continue to build on its success and capitalise on the growth opportunities ahead.”
