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LONDON - Bakkavor Group plc has completed the sale of its China operations to Lihe Xing (Qingdoa) Food Technology Co. Ltd. for approximately £50 million (RMB 509 million) on a cash and debt-free basis, the fresh prepared food provider announced Friday.
The transaction, initially disclosed on April 29, 2025, represents Bakkavor’s complete exit from the Chinese market after more than two decades of operations in the region. The buyer is wholly owned by Lihoo’s (Qingdao) Food Industry Company Limited.
According to the company’s statement, the carrying value of the China operations’ net assets was expected to be approximately £32 million as of June 28, 2025, resulting in an anticipated net profit on disposal of at least £18 million following completion adjustments.
Bakkavor indicated that proceeds from the sale will be used to reduce the group’s leverage and supports its medium-term margin target of 6%.
"After more than two decades in China, we are incredibly proud of the business we have built," said Mike Edwards, CEO of Bakkavor. "The exit from China enables us to sharpen our focus on our core business."
The company currently employs approximately 14,900 people across 31 sites in its three remaining markets, supplying around 2,000 products including meals, pizza, bread, salads, and desserts to grocery retailers in the UK and US.
Bakkavor is listed on the London Stock Exchange (LON:LSEG) and describes itself as the leading provider of fresh prepared food in the UK with a growing presence in the US market.
The information was disclosed in a regulatory news service filing to the London Stock Exchange.
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