Leading international convenience business Greencore has reached an agreement to sell its cakes and desserts business in Hull to Bright Blue Foods Ltd.
The sale, which was for an undisclosed sum, marks Greencore’s exit from the UK cakes and desserts sector and coincides with the closure of the desserts facility in Evercreech, Somerset.
The acquisition is expected to be completed in early February 2018 following a consultation process with Greencore’s Hull employees.
It will double the size of Bright Blue Foods and will trade under the name of BBF (Hull) Ltd. The combined business will have turnover in excess of £140m and employ over 2,000 people across five sites.
Bright Blue Foods is a major supplier to UK retailers and is a big player in the private-label and ambient cake markets in the UK. Jonathan Lill, Bright Blue Foods CEO, will head up the Hull site, with support from the BBF board of directors.
“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,” said Lill.
“BBF is entirely focused 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.”
Greencore will provide further details in its trading update tomorrow (30 January 2018).