Lincoln-based The Original Cake Company has acquired Nottinghamshire firm Special Little Cakes.
As part of its plans to grow the business, it has also recently invested £250,000 in a new factory, which will be up and running within a few weeks.
The Original Cake Company produces hand-finished fruit and loaf cakes, supplying the wholesale trade and speciality retailers, while Special Little Cakes claims to be the UK’s largest manufacturer of miniature greetings cakes.
Established 25 years ago, Special Little Cakes had been looking to expand, and from this month, the trade and assets of the business, will come under the new ownership of The Original Cake Company, taking the combined staff total to 35.
“Both companies complement each other really well and we are looking forward to supplying an increased range of beautifully baked and skillfully decorated hand-iced cakes,” commented Simon Woodiwiss, general manager of The Original Cake Company.
He said that the company had outgrown its current site and was struggling for capacity, prompting the decision to invest in a new factory. He added that the new site would enable the business to get to a higher level of accreditation - BRC. “It will open us up to a whole new spectrum of opportunities,” he said.
Woodiwiss said the two cake businesses would be run separately for the foreseeable future, but added that the acquisition would help iron out the seasonal spike in production that the Lincoln firm had been experiencing.