Renshaw and Haydens owner Real Good Food has acquired a majority share in snack bar manufacturer Brighter Foods.
Real Good Food (RGF), which also owns ingredients suppliers Garrett Ingredients and R&W Scott, has bought an 84.33% stake in Brighter Foods, which was established just three years ago.
Brighter Foods develops and manufactures snack bars from factories in Tywyn, Gwynedd in mid-Wales, where it employs around 170 full-time staff. Its snacks are targeted at areas including diet control, gluten-free, lactose-free, low or no added sugar, sports nutrition, organic and fair trade.
Brighter Food’s output includes branded products for other business as well as its own brands, such as Wild Trail.
RGF is paying up to £9m for the stake, to be paid in two equal instalments – one on completion and the other on finalisation of the company’s 2017/18 audited accounts. The acquisition will be funded from RGF’s existing debt facilities, and is expected to be immediately earnings enhancing, said the company.
Brighter Foods reported profit before tax of £2.3m for the 12 months to 31 March 2016 and net assets of £2.7 million as at 31 March 2016.
RGF added that Brighter Foods, which was set up in April 2014, “has grown impressively under the leadership of an experienced senior management team, and the dedication of the skilled factory staff, led by founder and CEO Robin Williams”.
Following completion of the transaction, senior Brighter Foods management will retain a 15.67% stake in the business.
Williams, who will remain CEO, said he has known RGF executive chairman Pieter Totté for many years, and had previously worked with members of the RGF team.
“They share our vision to invest in the business and grow it further from the strong base we have established,” he added. “Together we have already agreed a headline plan to continue growing our manufacturing facilities in Tywyn.”
Brighter Foods fits well into RGF’s strategy of consolidating “profitable, well-run businesses in niche areas of the food manufacturing industry”, said Totté.
“Robin and his team have achieved fantastic growth and stability in the business and we are looking forward to continuing the success story,” he added. “Real Good Food’s investment will enable Brighter Foods to expand and improve its capacity and product range even further.”
A separate agreement gives Brighter Foods management the option to elect to sell half their stake to RGF after March 2020 and the remaining half in March 2021.
Real Good Food focuses on three main markets: cake decoration through Renshaw and Rainbow Dust Colours; food ingredients through Garrett Ingredients and R&W Scott; and premium bakery through Haydens and Chantilly Patisserie.