Icelandic brothers Lydur and Agust Gudmundsson, who founded Bakkavor, and Boston-based Baupost Group now own 89% of shares in Bakkavor Group.
It is understood that Icelandic institutions have sold their 51% stake in Bakkavor to an investment vehicle set up by the brothers and Baupost.
Brothers retain positions
The Gudmundsson brothers have a controlling interest in the special purpose vehicle, called Bakk AL Holdings, and will retain their positions at the top of the company.
Bakkavor chief executive Agust Gudmundsson said: “I am delighted to welcome the Baupost Group to Bakkavor.
Welcome to group
“I am delighted to welcome the Baupost Group to Bakkavor.”
- Agust Gudmundsson, ceo, Bakkavor
“They are globally recognised as highly successful long-term investors and are supportive of the company’s continued expansion plans.”
The company said the deal would not result in any changes to day-to-day operations, the management board and other senior management positions.
‘Long-term investors’
“Bakkavor is pleased to welcome its new shareholders who are long-term investors with experience investing in a wide range of securities and asset classes globally, including within the food sector,” it said.
Meanwhile, last week Bakkavor announced that more than 300 employees were at risk of redundancy after a significant loss of business from Tesco. The firm hoped to save two-thirds of these jobs by changing shift patterns.
The ready meal and chilled food supplier has 32 facilities in the UK and employed more than 18,000 people in five countries.
It supplied Tesco, Marks & Spencer and Waitrose, while global customers include Burger King, Pizza Express, Pret a Manger and Starbucks.