Bakkavor to Divest China Operations in £50m Deal

Bakkavor China Divestment Marks Strategic Shift in £50m Deal

Bakkavor Agrees to Sell China Operations

Bakkavor has agreed to divest its China operations in a £50 million deal, marking a major strategic realignment. The Bakkavor China divestment involves selling its entire China business to Lihe Xing (Qingdao) Food Technology Co., a Lihoo-owned company. This move aligns with Bakkavor’s plan to streamline international operations and sharpen focus on core markets.

Local Buyer Brings New Expertise

The buyer, based in China, brings valuable expertise in fresh and frozen meals. Bakkavor’s Chinese division operates seven manufacturing sites and employs 2,300 people. It supplies fresh prepared foods like salads and meals to retailers and restaurants nationwide.

In 2024, Bakkavor China generated £105 million in sales. Now, with the new owner, this strong foundation can support further regional growth and customer expansion.

Completion Expected in Late 2025

Bakkavor expects the deal to finalize in the second half of 2025. CEO Mike Edwards praised the China team’s two decades of contributions. He said Lihoo’s local experience will bring additional value to the business and its future success.

This divestment follows Bakkavor’s recent agreement in principle with Greencore, which plans to acquire Bakkavor for £1.2 billion. That deal would create a major UK food company with £4 billion in combined revenue.

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