Bright future for cake maker says new owner
FOOD manufacturer McCambridge Group has sold its cake division to a private equity backed management buy-in.
The deal, worth £23.5m, has been funded by NBGI Private Equity, which is working with experienced industry operator Andrew Johnson, who has joined the business as chief executive.
Headquartered in the Republic of Ireland, McCambridge Group has had a sizeable presence and UK headquarters in Blackburn since its acquisition of ailing North West business Inter Link Foods in 2007.
Its cake division employs 1,100 people is one of the largest producers of private label cakes for the UK food industry.
The business, which operates from four primary manufacturing locations in the UK including Manchester, Blackburn and Bradford, and a further facility in Poland, will be renamed after the deal is finalised.
Richard Babington, investor director of NBGIPE who sourced and led the deal, said: “We are delighted to be backing Andrew in his second MBI into the food sector after a long search, working closely with him, to identify the right buy-in opportunity for his skills.
“He has a highly successful track record in growing private label businesses supplying the UK supermarket multiples, which I am confident will be extended with this investment.
“The buyout of McCambridge’s Cake Division is consistent with the acquisition strategy underpinning NBGIPE’s four other previous MBIs into the UK food sector, namely the purchase of a cash-generative, asset-heavy business with scope to grow and at a competitive purchase multiple.”
Mr Babington told TheBusinessDesk.com the business, which supplies mince pies and other products to many of the country’s leading supermarkets, would continue to be headquartered in Blackburn.
New chief executive Andrew Johnson added: “This is a really exciting opportunity to seize the initiative and become the pre-eminent cake manufacturer in the UK food industry by providing industry-leading levels of innovation, quality and service.
“Consistent with my previous work growing other private label suppliers, my focus will be to stimulate the market by focusing on innovation and investing in new equipment to make us simply the best supplier of cakes, tarts and sweet pies in the UK.”
Bank debt for the transaction was provided by PNC Business Credit.
