Duke Street Capital, private equity owners of confectionery manufacturer Burton’s Foods, has acquired Gateshead-based Northumbrian Fine Foods for an undisclosed sum.

After the deal was completed on January 10, Northumbrian Fine Foods chairman David Jones said: "This is an exciting time for our business. By joining with Burton’s Foods we will be able to grow and develop our brands utilising their insight and expertise."

Northumbrian Fine Foods, which employs 204 staff, produces biscuits under licence, including Traidcraft Geobars, Ainsley Harriott, You Are What You Eat, as well as private label cookies and cereal bars.

Burton’s Foods chief executive Paul Kitchener said: "Northumbrian Fine Foods has a strong range of brands and outstanding capability which complements our portfolio. It will enable us to exploit opportunities on a number of brands and increase our presence in the growing high value segments."

A company statement said that a review would be carried out over the coming months "to ensure a smooth passage of integration for the whole business into Burton’s Foods Limited".

Meanwhile Burton’s, which makes Jammie Dodgers, Maryland Cookies and Wagon Wheels, is to invest £1m in its Blackpool factory to produce Cadbury’s Fingers.

Wayne Jackson, regional general manager at the company, said the £1m investment in March would involve the installation of a new line.