Real Good Food, the UK baking and ingredients group, has bought a majority stake in Wales-based healthy snacking manufacturer Brighter Foods.
In a stock exchange filing today (5 April), Real Good Food said it had acquired an 84.33% interest in Brighter Foods on a cash and debt free basis for up to GBP9m.
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Under the terms of the deal, the price is to be paid in two 50% instalments – the second upon finalisation of Brighter Foods’ 2017/18 audited accounts.
The consideration will be satisfied from Real Good Food’s existing debt facilities and the company said the acquisition is expected to be immediately earnings enhancing to the group.
Following completion of the transaction senior Brighter Foods management will retain a 15.67% stake in the business. Under a separate shareholder agreement, senior management can elect to sell 50% of its stake to Real Good Food after March 2020 and the remaining 50% after March 2021.
Brighter Foods manufactures snack bars from its factories in Tywyn, Gwynedd, where it employs some 170 full-time staff. The company is a co-packer and manufacturers its own “better-for-you” brands including Wild Trail, which it said is stocked in major retailers and health stores, Real Good Food said.
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By GlobalDataReal Good Food executive chairman Pieter Totte said: “Brighter Foods fits well into our strategy to consolidate profitable well-run businesses in niche areas of the food manufacturing industry.” He said the group’s investment “will enable Brighter Foods to expand and improve its capacity and product range”.
