Unigate rump is sold to Greencore for £113 million

Uniq was put up for sale by its pension fund in April. The fund had earlier acquired the business as a solution to its pension deficit.

The majority of the scheme's members are former staff such as Unigate milkmen.

Greencore said the attraction of the business was its status as one of the top five suppliers to Marks & Spencer. Its sandwich business is the "jewel in the crown", said Greencore chief executive Patrick Coveney.

Greencore is funding the deal partly by a five-for-six rights issue that will raise £70 million.

It aims for cost savings of £10 million once the deal goes through, and job losses seem likely.

Coveney said the takeover is good news for most employees. "This brings certainty to them, it is good news. But you can never rule out job losses," he said. Uniq's board will stand down, which means pay-offs for the chief executive and finance director.

The deal values Uniq at a 63% premium to its shares on 1 April 2011, the day on which sale proceedings began.

Uniq's chief executive Geoff Eaton said: "It is a good offer from a strong business that provides an excellent strategic fit and, as such, represents the best outcome for employees, pension members and shareholders, as well as an exciting opportunity for Greencore."

Dublin-based Greencore failed in a bid to merge with Northern Foods this year.

Uniq's sandwich business sold 90 million of the 1.6 billion "on-the-go sandwiches" bought in the UK last year. The desserts arm has fared less well.

Greencore supplies ready-made sandwiches to most major food retailers apart from M&S.

It abandoned the Northern Foods bid after a rival offer from businessman Ranjit Boparan was backed by the board instead. The failed deal cost the company 13 million in costs.