‘Business Viking’ brothers in line for millions from ready-meal deal

Two brothers dubbed the “business Vikings” are successful enactment for a £250m payday aft selling their ready-meal concern to Irish sandwich-maker Greencore.

The Gudmundsson brothers, who founded Bakkavor successful 1986, are cashing successful aft striking a £1.2bn woody with Greencore, which volition make a caller food-to-go elephantine worthy £4bn.

Under the presumption of the deal, Lýdur and Ágúst Gudmundsson volition person 177m shares successful the caller radical alongside their £250m currency payout.

The quality of the woody comes aft months of speculation implicit a merger betwixt the 2 London-listed companies.

Bakkavor antecedently rejected 2 approaches from Greencore, with the committee claiming past period that an earlier £1.14bn connection had “significantly undervalued” the business.

Together, the nutrient manufacturers nutrient sushi, acceptable meals, sandwiches, dips, hummus and salads for Britain’s biggest supermarkets, including M&S, Sainsbury’s and Tesco.

It will, however, travel arsenic a important turning constituent for Bakkavor, which lone joined the London Stock Exchange successful 2017.

The listing had been seen arsenic a important infinitesimal for the Gudmundsson siblings, who had acceptable the institution up arsenic a concern processing and exporting cod roe.

They had antecedently borrowed from banks to money Bakkavor’s enlargement but came unstuck erstwhile the fiscal situation deed Iceland’s banking strategy successful 2008.

The brace had been forced to cede power of Bakkavor successful 2010 successful a debt-for-equity swap earlier taking it backmost successful 2016 successful a tie-up with US hedge money Baupost.

Despite the London float, the brothers remained the largest shareholders successful Bakkavor with a 50pc stake.

They were antecedently successful complaint of Bakkavor’s day-to-day operations betwixt 1986 and 2022 and person since retained seats connected the committee arsenic non-executive directors.

They are besides expected to articulation the committee of the caller combined business.

The tie-up is expected to easiness unit connected Greencore, which has precocious been targeted by activistic capitalist Oasis Management implicit boosting shareholder returns and speeding up a turnaround plan.

Greencore said unneurotic with Bakkavor, it could escaped up much currency to put successful maturation by looking astatine combining their organisation and buying teams.

However, national chiefs astatine GMB raised concerns implicit imaginable occupation losses.

Eamon O’Hearn, GMB nationalist officer, said “Companies ‘assessing synergies’ is often absorption talk for outgo cutting. It is wide acknowledged by the Government and the wider industry, that the UK nutrient and portion manufacture needs much capableness not less.

He added: “The GMB is calling for a committedness to nary mill closures and nary occupation losses.”