Bright Blue Foods (BBF) has agreed to acquire Greencore Group’s cakes and desserts business in Hull, UK for an undisclosed sum.
The transaction along with an earlier announced closure of a desserts facility in Evercreech will enable Greencore to exit from the UK cakes and desserts sector.
BBF is a UK-based ambient cake manufacturer, which was acquired by private equity investor Endless in 2015.
The Hull cakes and desserts facility, after the transaction will trade under the name of BBF (Hull).
BBF said that the combined business, post transaction, will have an annual turnover of over £140m. It will have more than 2,000 employees across five sites.
BBF CEO Jonathan Lill said: “This is a really exciting time for our company, our people and our customers. The product range and customer base from both businesses are very complementary.
“BBF is entirely focussed on the bakery sector and this acquisition will be transformational for our business. We are committed to continue to invest in the category and deliver great quality, service and innovation to our customers.”
Lill has been named as CEO of the combined business, and will be supported by the board of directors of BBF.
Endless investment director Richard Harrison said: “This acquisition will double the size of BBF and will enable the business to maximise opportunities in this category through its enhanced product offering and scale.
“We are delighted to support BBF with this deal, which once again showcases our expertise in acquiring non-core assets from large corporates and is a great way to start 2018.”
The transaction is likely to be completed in early February after a TUPE consultation process with employees at the Greencore Hull facility.
