Samworth Brothers has sold its Blueberry Foods cake and desserts business to Bakkavor Group.

The acquisition follows Bakkavor buying Haydens Bakery from Real Good Food last September, and increases Bakkavor’s presence in the UK bakery and desserts market.

Operating out of a custom-built facility in Leicestershire, Blueberry Foods employs around 420 staff and makes products for UK supermarkets.

In the past 18 months, £10m has been invested in the business to expand the factory and upgrade equipment. In the financial year ended 31 December 2018, revenues were £42m and the business made an EBITDA loss of £1m.

Bakkavor said the deal would build on its position in chilled desserts by providing additional capacity and adding new capabilities such as hot desserts. The company added it would strengthen Bakkavor’s desserts offer to its two largest customers, which are both also Blueberry customers.

“The acquisition of Blueberry is a great strategic fit,” said Bakkavor chief executive officer Agust Gudmundsson.

“Together with our recent addition of Haydens Bakery and a major investment at our site at Newark, our long-term commitment to growing our desserts category in the UK is clear.

“The team at Blueberry share our passion for providing outstanding service, quality and value to customers and we look forward to welcoming them to the group.”

The deal is expect to complete in mid-2019.