Prepared food supplier Geest is to be sold to Bakkavor Invest, if shareholders agree to the board’s recommendation.
Bakkavor has valued Geest at £485m, offering 655p per share and a 7p special dividend per share.
Chief executive officer of Geest, Gareth Voyle, said that Bakkavor’s proposal represented good value for shareholders, and added: “The food retailing market has changed dramatically in the last two years and, whilst Geest is well positioned, there is no doubt that price competition will continue to dominate the day-to-day grocery trade. Upon completion, this deal will bring together two of the best fresh food players in our industry.”
The scheme is expected to become effective on May 13.
Executive chairman of Bakkavor, Agust Gudmundsson, said: “Our stated ambition has always been to grow our business organically and through strategic acquisitions whilst maintaining our entrepreneurial ethos.
“Adding Geest to the Bakkavor portfolio will enable us to exploit our combined strengths through first, the partnerships we have with our customers and second, by focusing on continuous improvement in our quality of service and evolving innovative premium product offering.”