Cake maker McCambridge to sell own-label division
The company, which also owns the Soreen brand, said the division, which operates bakeries in Manchester, Bradford, Blackburn, Salisbury and Szczecin, Poland, needed investment to realise its potential.
It was in “exclusive discussions” with a potential buyer, it said.
Simon Webber, chairman of McCambridge Group said: “Following a strategic review of the business it was agreed that our Cake Division has great growth potential but requires additional capital investment to realise that potential. The sale of the business will allow this to happen.”
‘Business as usual’
Staff had been informed, and it was very with much “business as usual” the bakeries, he added. Should the sale be agreed, employees would be transferred to the new owner and would continue to work as they currently do.
A spokesperson for the group emphasised that no other parts of the three-division business were up for sale, scotching industry rumours that the entire business was being marketed.
McCambridge, which acquired the sprawling and debt-ridden Interlink Foods empire in 2007, has recently completed a three year turnaround plan.
During the turnaround process the group was restructured into three divisions.
These are: Soreen, based in Manchester, the cake division, now on sale, which makes lines including celebration cakes, mini rolls and, muffins for leading retailers and the Dublin-based Irish bread division McCambridge Ireland.
The review also saw unwanted businesses disposed of and premises modernised, enlarged or upgraded.
Gross profit of £39.9M
McCambridge reported a gross profit of £39.9M on turnover of £115.5M in the year to June 2011. That was behind rival cake giant Finsbury Food, which reported sales of £207M in the year to June 30, with profits of £6.5M.
Since 1999 the group has grown from a regional Irish business with a bakery in Leinster through acquisition. Three acquisitions have been made in Ireland and six in the UK, in the speciality breads and cakes sector.
The company then acquired Inter Link Foods’ 11 bakeries, including the Polish site, from administration in July 2007 and set about streamlining operations in 2009.
The company would be left with just the Soreen bakery and one in Dublin after the sale.
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