Endless swallows cake maker Bright Blue
PRIVATE equity investor Endless has acquired a majority stake in Lancashire cake maker Bright Blue Foods.
Financial details of the deal for the Blackburn-based company, which is one of the country’s biggest manufacturers of mince pies, were not disclosed.
The deal, Endless’ 10th of 2015, sees the investment firm replace NGBI as the major shareholder with NGBI retaining a stake in the Blackburn-based business.
Bright Blue, which was previously known as Inter Link Foods, was owned by Irish firm McCambridge before its acquisition by NGBI three years ago. It has bakeries in Bradford and Poland and employs more than 700 people.
In the year to June 28 2014 it made an operating profit of £2.7m on revenues of £80.5m, although sales have dropped back to around £70m as a result of disruption caused by closing two of its bakeries in the last 12 months.
Bright Blue is a significant player in the private label and ambient cake market in the UK, manufacturing a wide range of bakery products including mince pies, celebration cakes, swiss rolls and cake bars.
In addition to providing high quality private label cakes for Tesco, M&S, Asda, Aldi and Morrisons, Bright Blue has developed a strong and growing branded business with Aunt Bessie and Mars.
Di Walker, who works with Endless at Karro Food Group, joins the board as Non-Executive Director.
Steve Crossley, who joined Bright Blue in late 2014, will continue to lead the business as chief executive.
Crossley said: “We have a strong, well invested business with real competitive advantages and we are delighted that Endless is keen to back our growth plan.
“Our recent bakery rationalisation in the UK and expansion in Poland gives us an opportunity to provide our customers with a compelling proposition and we have high aspirations for the future. This is an exciting time for everyone at Bright Blue Foods and we intend to take full advantage of the support provided by our new investors.”
Mathew Deering, partner at Endless, added: “We are delighted to have the chance to back Bright Blue and support Steve and the team’s ambitions to take a long established North West business forward.
“Bright Blue has a high quality reputation for its product quality and range of capabilities and we are excited about the plans to enhance this further.”
The Endless deal team was led by Mathew Deering, Richard Harrison and Adam Keasey. Endless was advised by Addleshaw Goddard (Andrew Smith, Richard Chere and Tim Taylor). Bright Blue Foods and its management team were advised by Squire Patton Boggs and Pinsent Masons respectively.
