Bakkavor attracting "a number" of suitors

Bakkavor attracting "a number" of suitors

The sale of a stake in UK convenience group Bakkavor has attracted interest from "a number" of suitors – not just PAI Partners and Pamplona Capital – sources close to the sale process revealed today (25 May).

According to reports, PAI and Pamplona are eyeing a stake in the business. However, a source told just-food that there was interest beyond the private-equity players.

Last summer, sources confirmed Bakkavor had contacted banking advisors to sell stakes in the business held by a number of investors. These include Arion Banki, the Pension Fund of Commerce and the Gildi Pension Fund, who may be looking to sell their shares in the group, which total 37% of outstanding stock. just-food understands CEO Agust Gudmundsson and his brother Lydur have no plans to sell the 39% of Bakkavor that they own.

Bakkavor has improved its financial performance – gaining market share in the UK convenience sector and reducing its cost base. The source said it was the "right time" for the Icelandic institutional investors to divest stakes they took "almost by default" during the financial crash in 2008.

Bakkavor and PAI declined to comment while representatives at Pamplona were unavailable at time of publication.