Bakkavor has sold its Chinese division for £50 million as it refocuses on core markets and works to strengthen its balance sheet. The buyer, Lihe Xing (Qingdao) Food Technology Co., part of China’s Lihoo Food Industry group, will take over Bakkavor China’s seven manufacturing sites and around 2,300 staff.
The unit generated £105 million in revenue in the 2024 financial year. Bakkavor expects to make a £15 million profit from the sale, which is subject to regulatory clearance and is expected to be completed in the second half of 2025. Proceeds from the deal will be used to reduce group debt and support its target of reaching a 6% profit margin.
The move comes as Bakkavor weighs a possible tie-up with rival Greencore, whose £1.2 billion bid could be extended, potentially leading to the creation of a combined group with £4 billion in annual revenue.
This strategic exit signals Bakkavor’s intent to simplify its structure and improve margins as consolidation in the prepared food sector accelerates.
