Bakkavor agrees to buy desserts firm Blueberry Foods

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The deal would enable Bakkavor to expand in chilled and hot desserts

Bakkavor Group, the fresh prepared food manufacturer, has entered an agreement to purchase Blueberry Foods from Samworth Brothers for an undisclosed sum.

The acquisition is designed to build on its ‘leading position in chilled desserts’ and provide ‘both additional capacity and new capabilities such as hot desserts’, Bakkavor said in a statement.

The move comes after Bakkavor bought Haydens Bakery from Real Good Food for £12m in September 2018.

Blueberry, which operates from a custom-built facility in Leicestershire employing approximately 420 employees, produces a range of desserts for the UK's leading grocery retailers.

Invested £10m

Over the past 18 months, it has invested £10m in the business to expand the factory and upgraded equipment.

In the financial year ended 31 December 2018, revenues were £42m and the business made an EBITDA loss of £1m.

"The acquisition of Blueberry is a great strategic fit,” said Bakkavor chief executive Agust Gudmundsson.

Haydens Bakery

“Together with our recent addition of Haydens Bakery and a major investment at our site at Newark, our long-term commitment to growing our desserts category in the UK is clear. The team at Blueberry share our passion for providing outstanding service, quality and value to customers and we look forward to welcoming them to the group."

The acquisition is conditional on completion of a TUPE process with affected employees, Bakkavor said.

The deal is expected to complete by mid-June 2019.