Greencore, a leading international company, has entered into an agreement to sell its cakes and desserts business in Hull to Bright Blue Foods Ltd.
The sale, the amount of which was not disclosed, marks Greencore’s exit from the UK cake and dessert business and coincides with the closure of the dessert factory in Evercreech, Somerset.
The acquisition is expected to be finalized in early February 2018 following a consultation process with Greencore employees in Hull.
It will double the size of Bright Blue Foods and market under the name BBF (Hull) Ltd. The combined company will generate sales of over £ 140 million and employ more than 2,000 people at five locations.
Bright Blue Foods is a major supplier to UK retailers and a significant player in the UK private label and ambient cake markets. Jonathan Lill, CEO of Bright Blue Foods, will run the Hull site, with the support of BBF’s board of directors.
“This is a really exciting time for our company, our employees and our customers. The product line and customer base of the two companies are very complementary, ”said Lill.
“BBF is fully focused on the bakery industry and this acquisition will be transformational for our business. We are committed to continuing to invest in the category and to deliver quality, service and innovation to our customers. “
Greencore will provide more details in its trading update tomorrow (January 30, 2018).