Private equity-backed cake maker Bright Blue Foods (BBF) has acquired Yorkshire bakery supplier Sargents for an undisclosed sum.
The Doncaster-based business manufactures a range of sweet pies, tarts and sundaes and generates annual revenues of about £24m.
BBF CEO Jonathan Lill said Sargents had experienced “a very challenging time” and, as a result, the group was “keen to step in immediately” to protect continued supply to its customers, including supermarkets and independent shops, and the employees.
The site in Doncaster will continue to trade under the name of Sargents Bakeries Ltd.
“This is another strong acquisition for BBF, our people and our customers,” Lill added.
“Sargents’ product range and customer base are very complementary and the acquisition will enable us to offer customers even greater flexibility and innovation.
He said BBF remained committed to continued investment across both businesses.
Private equity firm Endless acquired BBF in September 2015 and subsequently supported the takeover of the cakes and desserts division of Greencore in 2018, which added chilled dessert capabilities and doubled turnover.
According to the latest available accounts at Companies House, BBF increased revenues 2.6% to £159.7m in the year ended 27 June 2020, with the Covid outbreak holding back growth in the final quarter of the year.
BBF, which operates from five bakeries in the UK and one in Poland, supplies retailers with a range of own label, licensed and branded cakes, including mince pies, celebration cakes, crumbles, cupcakes, fairy cakes, cheesecakes and Christmas cakes.
The Endless deal team for the Sargents transaction was led by Richard Harrison, Lee Abbott and James Warburton. BBF and Endless were advised by Walker Morris and the KPMG tax team.