Warburtons sells Newport bakery

BAKERY giant Warburtons has sold its plant at Newport in South Wales to a competitor in a deal which has saved more than 100 jobs.

Warburtons had only acquired the plant, which employs 114 people and is capable of producing 4,000 loaves per hour, from competitor Rathbones five years ago following a £10m investment. However, It announced a decision to close the business in September, arguing that it did not have a sustainable future.

However, a deal has now been agreed to sell the plant to local competitor Brace’s Bakery – a family-owned business which has been operating for more than 100 years and employs 300 staff.

Scott Richardson, director of sales and marketing at Brace’s said: “This is a very exciting time for Brace’s Bakery as the business is rapidly expanding.

“We have welcomed former Warburtons employees to the Brace’s team and look forward to strengthening our existing position as the number one consumer choice for white sliced bread in South Wales and the South West.”

The firm was advised by the Birmingham office of accountancy firm Mazars.
Corporate finance partner Andrew Millington said: “The transaction was completed to a tight timeline once agreement on the sale had been reached.

“We were very pleased to advise on a deal in which so many jobs were saved. It provides Brace’s with the additional capacity it has been looking for to meet demand from customers. We hope Brace’s continues to go from strength to strength.”

Brace’s legal advisers were Morgan Cole.  Warburtons was advised by Eversheds.