The deal is the latest in a string of disposals for bakery ingredients firm RGF, which also sold its Haydens, Garretts and R&W Scott subsidiaries in the past nine months. It said the move freed it to focus on growing its profitable cake decoration (Renshaw and Rainbow Dust) and ingredients (Brighter Foods) businesses, which now comprise the majority of its activities.
These disposals and other financing activities had given it the financial resources to fund this growth, it said.
Cash proceeds
RGF said it would receive £200,000 in consideration for the latest transaction, to be paid in cash, £100,000 paid on completion and a further £50,000 on each of the first two anniversaries of the sale. The cash proceeds would contribute to the group's working capital purposes.
Chantilly has been producing frozen desserts from its premises in Paignton, Devon for 20 years. When it was carved out from Haydens Bakery Limited, before Haydens’ disposal to Bakkavor Group for £12m in September 2018, the net assets of RGF Patisserie amounted to £90,000.
In the group's financial year ended 31 March 2018, Chantilly contributed £2.4m of revenue, and incurred a loss before non-recurring items and tax of £250,000.
RGF sold its R&W Scott jam business, which is based in Carluke, Scotland for £3.95m, also via a management buyout, in December 2018. It sold Garrett Ingredients in April last year for £1.8m.
