London Stock Exchange welcomes Bakkavor Group plc to the Main Market

London Stock Exchange welcomes Bakkavor Group plc to the Main Market

London Stock Exchange today welcomed Bakkavor Group plc ("Bakkavor" and "the Group"), a leading provider of fresh prepared food, to the premium listing segment of the Official List of the FCA and to trading on the Main Market for listed securities. The offer price has been set at 180 pence per share which equates to a market capitalisation of £1,043 million on admission.

Bakkavor is the leading provider in the large and fast-growing UK fresh prepared food ("FPF") market and has a growing international presence in the United States and China.

Bakkavor is the number one producer by market share in the UK of the four FPF product categories of Meals, Salads, Desserts and Pizza & Bread. Its customers include some of the UK's leading grocery retailers, including Tesco, Marks & Spencer, Sainsbury's and Waitrose, which sell the Group's products to consumers under their respective brands.

Bakkavor's International segment operates in the US and China. As these markets are not as well developed as the UK FPF market, Bakkavor seeks to have a transformative influence on the continued development and availability of fresh prepared foods in these areas.

Bakkavor was founded in 1986 and has its headquarters in London. As at FY 2016, Bakkavor had a total of approximately 19,000 employees. At the time of listing, the Group operates 26 factories in the UK, three in the US (plus one under construction) and eight in China (plus one under construction).

The Directors believe that the offer will enable the Group to further invest in the business; enable the Group to reduce its current leverage; and provide a partial realisation of the investment in the Group by the Selling Shareholders.

Agust Gudmundsson, Chief Executive, added:
"Joining the LSE is an important day for everyone at Bakkavor and we are delighted to be listing at a very exciting time for the Group. Our passion for making the best tasting fresh prepared food, underpinned by our expertise and our focus on innovation, has made us the clear leader in an attractive and fast-growing market.

We have long-established relationships with the UK's leading food retailers and our quality products are core in their efforts to gain greater exposure in the exciting fresh convenience sector. We have a long track record of delivering sustainable growth in both revenue and profits and there is considerable momentum right across the Group. Our experienced management team has the ability and ambition to ensure we can further strengthen our position in the UK while accelerating our international growth ambitions.

This IPO will enable us to continue to invest to ensure we create value for all investors and stakeholders, and bring more great tasting food to our customers. I am hugely proud of what has been achieved to date at Bakkavor and look forward to leading the business through the years to come."

Simon Burke, Independent Non-Executive Chairman of Bakkavor Group plc, 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. The Board and I look forward to working with Agust and the rest of the management team to ensure the delivery of long-term returns for all investors."

HSBC, as Sponsor, and Morgan Stanley acted as Joint Global Coordinators, and together with Barclays, Citigroup and Peel Hunt acted as Joint Bookrunners. Rabobank acted as Lead Manager. Rothschilds acted as Financial Adviser. Freshfields acted as Legal Adviser to the Company. The Underwriters were advised by Linklaters.

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