US-based hedge fund Baupost has sold its minority stake in UK-based food manufacturer Bakkavor to private-equity firm LongRange Capital.
In a stock-exchange filing, Boston-headquartered Baupost announced the sale of its approximately 116 million shares, representing a 20.1% stake in Bakkavor, for an undisclosed sum. As a result of this transaction, Baupost’s non-executive director Patrick Cook will step down from the Bakkavor board, and LongRange’s Robert Berlin will take his place. This change marks Berlin’s return to the board after previously serving from 2016 to 2018.
Simon Burke, chairman at Bakkavor, expressed his gratitude for Baupost’s support and Cook’s contributions to the company, while also welcoming back Berlin. This ownership shift is set to take place on Tuesday, solidifying LongRange as a major shareholder in Bakkavor.
The change in ownership comes after Bakkavor reported robust financial results, with first-half revenue reaching £1.09bn ($1.39bn), a 7.9% increase from the previous year. Adjusted operating profit also rose 2.1% to £43.4m, leading the company to update its full-year profit outlook to at least match the previous year’s £89.4m. Bakkavor’s share price rose 6% following the announcement of the ownership change.
Baupost initially invested in Bakkavor in 2016 when it partnered with the company’s then chairman and CEO. Since then, Baupost has been a significant shareholder as Bakkavor went public and continued to grow.
In welcoming LongRange’s involvement, Bakkavor CEO Mike Edwards highlighted the value that Berlin’s experience will bring to the board as the company pursues its strategic ambitions.
