Greggs (LSE: GRG) and Dr Martens (LSE: DOCS), two mid-cap names that have fallen sharply from their peaks, are drawing attention as FTSE 250 takeover targets as depressed valuations leave both companies trading well below the multiples their brand strength might otherwise command.
Greggs: Logistics Build-Out Meets a Compressed Valuation
Greggs reported total sales of £2,151.2 million for full-year 2025, up 6.8% from £2,014.4 million the prior year, according to the company’s 2025 preliminary results. Underlying profit before tax fell 9.4% to £171.9 million from £189.8 million, squeezed by cost pressures.
The profit dip has weighed on the share price. The stock now trades on a price-to-earnings ratio of roughly 15 times, against a 10-year average of 23 to 24 times.
Trading momentum remains modest. In the first nine weeks of 2026, like-for-like sales grew 1.6% and total sales rose 6.3%, with management expecting profit growth in the first half but flagging that new distribution costs will weigh on the second half, the preliminary results document shows.
What may attract a bidder is the infrastructure Greggs is assembling to reach a long-term target of up to 3,500 shops. The company opened a record 226 shops in 2024, with 28 closures and 145 net additions, bringing the estate to 2,618 shops at 28 December 2024. It is targeting 140 to 150 net openings in 2025.
To support the expansion, Greggs is building two new national distribution centres: a frozen manufacturing and logistics facility in Derby, on schedule to open in the second half of 2026, and a chilled and ambient logistics centre in Kettering, due in the first half of 2027, according to the 2025 results presentation.
The vertically integrated model, which runs its own manufacturing centres and logistics network and employs more than 33,000 colleagues, gives a prospective buyer control of the supply chain from production to shop floor. For a trade acquirer, that is a ready-made food-service platform at a valuation well below its recent historical norm.
Two FTSE 250 Takeover Targets With Different Risk Profiles
Dr Martens offers a different proposition. Its shares have fallen roughly 80% over five years, a collapse rooted in disappointing US sales after a 2021 flotation that valued the business richly.
The company priced its IPO at 370p per share in January 2021, implying a market capitalisation of £3.7 billion. The offering was eight times oversubscribed. The contrast with current valuations is stark: Stockopedia data puts the market capitalisation at approximately £791.81 million at a recent close price of 81.80p, with a trailing price-to-sales ratio of 1.04.
Heritage footwear brands with comparable positioning have historically traded on price-to-sales multiples of 2 to 3 times, making the current ratio of just above 1 time a potential entry point for a luxury goods acquirer or private equity buyer.
The underlying financials are stabilising. For its latest full year, Dr Martens reported revenue down 1.4% on a constant currency basis, but adjusted profit before tax rose 61% to £55 million on a reported basis, driven by gross margin progression of 1.2 percentage points and a reduction in operating expenditure of £13.8 million, according to a summary compiled by Perplexity Finance.
The 1460 boot remains one of the most recognised silhouettes in footwear, and the brand’s heritage gives it cross-category appeal. Prior to the 2021 IPO, Permira grew Dr Martens’ revenues from £209 million to £672 million and lifted e-commerce from 7% to 20% of sales, demonstrating the brand’s scalability in the right hands.
Both companies carry real risks. Consumer spending in the UK remains under pressure, and Greggs faces second-half cost headwinds from the Derby site. Dr Martens must demonstrate that the US business can recover sustainably, not merely stabilise.
Takeover bids are never guaranteed, and premiums vary widely when they do arrive. For investors who believe in the underlying recovery case, though, a compressed multiple offers a margin of safety whether or not a formal approach materialises.
The next clear test for Greggs is the Derby facility opening in the second half of 2026: delivering on schedule would validate the long-term capacity story and could reset market expectations on the growth trajectory.
