REYKJAVIK, Iceland, 27 April 2006. Bakkavör Group (ICEX: BAKK), an international manufacturer of fresh prepared foods, has reached an agreement to acquire New Primebake Limited ('New Primebake'), a leading manufacturer of chilled bread products in the UK, from Primebake Limited.
New Primebake was established in 1989 and has, over the years, performed well. For the year ended 31 December 2005, the Company's EBITDA amounted to approximately £3.0 million on turnover totalling £33.4 million. Net assets at the same date were £5.9 million.
The acquisition price, which will remain confidential, has been paid and financed through the Group's own cash resources. The acquisition is subject to the approval of the UK's Office of Fair Trading ('OFT') - a decision which is expected within a period of 4-8 weeks.
Following completion of the New Primebake acquisition, Bakkavör Group will become the largest supplier of chilled bread products in the UK. In addition, the acquisition of New Primebake will improve further the Group's manufacturing efficiency in chilled bread as well as expand its capacity and product portfolio in this product category.
As in previous acquisitions, Bakkavör Group's management has emphasised the importance of retaining the services of key employees and has already entered into an agreement with New Primebake's key management.
Ágúst Gudmundsson, Executive Chairman of Bakkavör Group, commented:
"New Primebake is a well established business with a good track record and sound management. This acquisition will widen our product portfolio in chilled bread as it complements our existing bread business. This will enable us to make full use of existing capacity, allowing us to continue to innovate to fulfil consumer and customer demand in this area."
For further information, please contact: Ágúst Gudmundsson Executive Chairman Bakkavör Group Tel: +44 (0)20 8728 5100
Hildur Árnadóttir Chief Finance Officer Bakkavör Group Tel: +354 550 9700
About New Primebake
Operating from a single site in Nantwich, Cheshire, where it employs around 340 people, New Primebake is a privately-owned company, which is part of Primebake Limited. New Primebake manufactures chilled bread products such as filled garlic baguettes, garlic slices and craft breads such as ciabatta and foccacia, and supplies the major UK retailers.
About Bakkavör Group
Bakkavör Group is a leading international food manufacturing company specialising in fresh prepared foods and produce. The Group operates over 40 factories and employs over 14,000 people in seven countries with a pro-forma turnover over £1 billion sterling. The Group's Head Office is in Reykjavík, Iceland, and the business is listed on the Iceland Stock Exchange (www.icex.is Ticker: BAKK). In addition to the UK and Iceland, the Group also has business operations in France, Belgium, South Africa and China.
Bakkavör Group was founded in 1986 and celebrates its 20th Anniversary this year. During this time, the business has grown significantly and today Bakkavör Group the largest manufacturer of fresh prepared foods and produce in the UK.
The Group's vision is to be recognised and respected as the world's leading fresh prepared foods and produce provider. Bakkavör Group has attained leading market positions in its key market areas of ready meals, pizzas, convenience salads and leafy salads. In total, the Group makes over 4,500 products in 17 product categories, which are developed and sold under its customers' own brands.
For more information about Bakkavör Group, please visit the Group's website www.bakkavor.com