Chairman Simon Webber said the cake division has “great growth potential”

Chairman Simon Webber said the cake division has “great growth potential”

UK baked goods company McCambridge has sold its own-label cake division to private-equity firm NBGI.

The deal, announced this morning (5 December), is for a business that operates bakeries in Manchester, Bradford, Blackburn, Salisbury and Szczecin in Poland, produces a range of cakes and pies for leading retailers.

Chairman Simon Webber said the cake division had "great growth potential". However, he insisted a strategic review coupled with approaches from potential acquirers led the company to believe the unit would benefit from being demerged and managed as a separate entity.

"We are delighted that the business has been sold to NBGI Private Equity, who have a track record in owning businesses in the food industry," said Webber. "The successful sale of the cake division is a great credit to all management and employees."

Webber said the group's focus will now turn to the firm's two remaining divisions: Soreen malt loaves and fruit loaf products; and its bakery business in Ireland.

"We will continue to develop these business units on the back of the excellent work the divisions have completed already," Webber said.