Samworth Brothers offloads loss-making desserts business

Lincolnshire-based food company Bakkavor Group has bought Samworth Brothers subsidiary Blueberry Foods, a desserts business.

Blueberry operates from Leicestershire with approximately 420 employees and produces a range of desserts for the UK’s leading grocery retailers.

Investment of more than £10m over the last 18 months has expanded the factory. In the financial year ended 31 December 2018, revenues were £42m and the business made a loss of £1m.

The deal is conditional on completion of a TUPE process with affected employees and of other customary pre-closing conditions. It is expected to complete by mid-June 2019.

Agust Gudmundsson, chief executive of Bakkavor, said: “The acquisition of Blueberry is a great strategic fit for Bakkavor. Together with our recent addition of Haydens Bakery and a major investment at our site at Newark, our long-term commitment to growing our desserts category in the UK is clear. The team at Blueberry share our passion for providing outstanding service, quality and value to customers and we look forward to welcoming them to the Group.”