Renshaw owner Real Good Food (RGF) has sold Chantilly Patisserie to its management team.
The deal is the fourth disposal by RGF since it sold Garrett ingredients in April, with the business also selling Haydens Bakery and, most recently, R&W Scott.
Operating out of Paignton, Devon, for 20 years, Chantilly produces frozen desserts for customers including Marston’s Inns & Taverns, Warner Leisure, Brakes and Country Range.
In RGF’s financial year to 31 March 2018, Chantilly contributed £2.4m of revenue, and made a pre-tax loss of £0.3m. At the date it was separated from the Haydens Bakery business, Chantilly’s net assets were £0.09m.
RGF is to receive a total of £0.2m for Chantilly, with £0.1m paid on completion and a further £0.05m on each of the first two anniversaries of the sale.
The disposals followed a difficult period for RGF including the exit of founder and executive chairman Pieter Totté, profit warnings, and the announcement it would be improving its corporate governance and reporting after admitting standards had been below those investors “might reasonably expect”.
Chief executive Hugh Cawley described its last financial year – when it reported a £23.2m operating loss – as one the business would look back on with “little pride or satisfaction”.
RGF today said that, following the disposals, it would be free to focus its attention and resources on growing its two “profitable, continuing businesses” – cake decoration under the Renshaw and Rainbow Dust brands; and ingredients through the Brighter Foods operation.
“Having transformed the group’s financial position as a result of these disposals and other financing activities, the financial resources are now available to fund this growth,” states RGF.
RGF expects to incur an accounting profit of around £0.06m on the disposal of Chantilly and a write-down of parent company reserves at 31 March 2019 of approximately £0.06m.
Garrett Ingredients – April 2018
- Garretts, which supplies dairy, sugar and other food ingredients to UK manufacturers, was sold to Kent Foods Limited for £1.8m cash.
Haydens Bakery – September 2018
- Haydens, which has been part of RGF since its inception in 2003, makes a wide range of baked goods from two sites in Devizes, Wiltshire, and has 480 employees. The business – excluding the Chantilly Patisserie operation – was sold to Bakkavor Group for £12m.
R&W Scott – December 2018
- Based in Carluke in Lanarkshire, R&W Scott has been producing jams and preserves for more than 130 years and last year had a turnover of almost £11m. The business was sold to its management team in a £4m deal.
Chantilly Patisserie – February 2019
- Frozen desserts manufacturer Chantilly Patisserie is sold to its management team.