REG - Bakkavor Group PLC - Bakkavor completes sale of China operations

BakkavorAnnouncement

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RNS Number : 7446Q  Bakkavor Group PLC  11 July 2025

11 July 2025

Bakkavor Group plc

 

Bakkavor completes sale of its China operations, concluding the Group's exit
from the region

 

Further to the announcement on 29 April 2025, Bakkavor Group plc ("Bakkavor"
or "the Group") today confirms that it has completed the sale of its China
operations (Bakkavor China Holdings Limited) to Lihe Xing (Qingdoa) Food
Technology Co. Ltd., wholly owned by Lihoo's (Qingdao) Food Industry Company
Limited ("Lihoo's").

 

The cash consideration is RMB 509m(1) (c.£50m) on a cash and debt-free basis.
At 28 June 2025, the carrying value of net assets of the China operations is
expected to be c.£32m, resulting in an expected net profit on disposal of at
least c.£18m, following completion adjustments. Transaction proceeds will be
used to further reduce the Group's leverage.

 

This sale completes the Group's successful exit from the region and supports
the delivery of the Group's medium-term margin target of 6%.

 

Mike Edwards, CEO, commented:

"After more than two decades in China, we are incredibly proud of the business
we have built and I would like to thank our colleagues for their contribution,
and for their commitment in continuing to deliver excellent service for our
customers throughout this process. We are confident of the business's
continued success under Lihoo's ownership, benefitting from their local
expertise as it embarks on the next phase of its growth journey.

 

The Group's strategy remains clear, and the exit from China enables us to
sharpen our focus on our core business and support the delivery of our
medium-term margin target."

 

1.   Based on the enterprise value

 

ENQUIRIES

Institutional investors and analysts:

Lee Miley, Chief Financial Officer

Emily Daw, Head of Investor Relations
 
       +44 (0) 20 7908 6114

 

Financial
media
 
          Bakkavor@mhpgroup.com (mailto:Bakkavor@mhpgroup.com)

Katie
Hunt
       +44 (0) 7884 494 112

Rachel
Farrington
       +44 (0) 7739 312 199

 

About Bakkavor

We are the leading provider of fresh prepared food in the UK, and our presence
in the US positions the Group well in this high-growth market. We leverage our
consumer insight and scale to provide innovative food that offers quality,
choice, convenience, and freshness. Around 14,900 colleagues operate from 31
sites across our three markets supplying a portfolio of c.2,000 products
across meals, pizza & bread, salads and desserts to leading grocery
retailers in the UK and US. Find out more at www.bakkavor.com
(https://protect.checkpoint.com/v2/___http:/www.bakkavor.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpkOWNiYmFkMTJiODBmMTllYmUzZjBmYjA4YzFlOTk3ODo2OjkzNmQ6NzZkZmEwZGQ0MWFlOWU1ZDI3ZjkzOGUxODQ3M2ZkNzU2N2NjZWY1YmNhNWQzYjI5MWZkMzcxNzFjOTJjMGY2ODpwOkY6Tg)
.

 

LEI number: 213800COL7AD54YU9949

 

Disclaimer - forward-looking statements

This statement, prepared by Bakkavor Group plc (the "Company"), may contain
forward-looking statements about the Company and its subsidiaries (the
"Group"). Forward-looking statements involve uncertainties because they relate
to events, and depend on circumstances, that will, or may, occur in the
future. If the assumptions on which the Company bases its forward-looking
statements change, actual results may differ from those expressed in such
statements. Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update these forward-looking
statements other than as required by law. Nothing in this statement should be
construed as a profit forecast. Where relevant, some numbers and
period-on-period percentages have been rounded or adjusted to ensure
consistency with the financial information for the latest financial reporting
year unless otherwise stated.

 

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