The deal is the latest in a series of divestitures for bakery ingredients company RGF, which has also sold its subsidiaries Haydens, Garretts and R&W Scott in the past nine months. He said the move allowed him to focus on growing its profitable cake decorating (Renshaw and Rainbow Dust) and ingredients (Brighter Foods) businesses, which now make up the majority of its businesses.
These disposals and other financing activities had given him the financial resources to finance this growth, he said.
RGF said he would receive £ 200,000 in consideration for the last transaction, to be paid in cash, £ 100,000 paid on completion and an additional £ 50,000 on each of the first two anniversaries of the sale. The cash proceeds would contribute to the working capital of the group.
Chantilly has been producing frozen desserts at its premises in Paignton, Devon for 20 years. When he was cut off from Haydens Bakery Limited, before Haydens was sold to the Bakkavor Group for £ 12million in September 2018, RGF Patisserie’s net assets were £ 90,000.
During the group’s financial year ended March 31, 2018, Chantilly generated revenue of £ 2.4 million and recorded a loss before non-recurring items and taxes of £ 250,000.
RGF sold its Carluke, Scotland-based jam business R&W Scott for £ 3.95million, also through a management buyout, in december 2018. He sold Garrett ingredients in April of last yearfor £ 1.8million.