US-based hedge fund Baupost has sold its minority stake in UK-based food manufacturer Bakkavor to private-equity firm LongRange Capital.

Boston-headquartered Baupost, which had held around 116 million shares in Bakkavor representing a 20.1% stake, sold its stake for an undisclosed sum, the in the UK private-label manufacturer announced today (15 January) in a stock-exchange filing.

Non-executive director Patrick Cook, Baupost’s nominated representative on the Bakkavor board, is set to step down.

Cook will be replaced by LongRange’s Robert Berlin, who used to hold a position on the board between 2016 and 2018.

Simon Burke, chairman at Bakkavor, said: “Baupost has been a supportive shareholder in Bakkavor over many years and we wish them well.  Patrick Cook was a very positive addition to our board, giving us insight, good challenge and constructive debate.  I would like to thank him for this on behalf of us all and wish him every success in the future.

“In the meantime, I am delighted to welcome back Bob Berlin.  He knows us and our markets very well, and I look forward to the Board having the benefit of his knowledge and energy once again.”

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By GlobalData

Baupost invested in Bakkavor in 2016 when the hedge fund teamed up with the company’s then chairman and CEO to take control of the business. A year later, Bakkavor was listed on the London Stock Exchange, with Baupost retaining a shareholding.

The transaction with LongRange is expected to take place on Tuesday, formally making the Connecticut-based private-equity firm a Bakkavor shareholder.

Bakkavor CEO Mike Edwards said: “I would like to extend a warm welcome to Bob Berlin, who rejoins our board representing LongRange. He has a deep understanding of our business as well as our markets and his experience will be invaluable as we continue to build positive momentum and deliver our strategic ambition.”

In September, Bakkavor reported its first-half revenue reached £1.09bn ($1.39bn), up 7.9% from the previous year.

Adjusted operating profit jumped 2.1% to £43.4m and the company updated its adjusted operating profit outlook for the full year by £4m, at least matching the prior year’s £89.4m.

Bakkavor’s share price rose 6% by 08:05 GMT today.