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Bakkavor buys Haydens Bakery

Bakkavor buys Haydens Bakery

Alongside its interim results, food company Bakkavor (BAKK) has announced the acquisition of Haydens Bakery for £12m. The deal, designed to "increase the breadth and depth" of its dessert range, will be funded with £9.6m in cash, and £2.4m-worth of existing finance leases. Haydens generated around £31.3m in sales during the year to March 2017, and broke even at the operating level, but management believes it can grow sales to £50m, generating £3m of incremental cash profits, implying a 20 per cent return on invested capital. The baking specialist will also make use of Bakkavor’s facility in Newark, which is currently undergoing expansion.

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