I expect you all know about this... Toxteth-based Real Good Food Company has made a £4m acquisition in Lancashire cake decorating products business Rainbow Dust Colours. The Preston-based business employs 28 staff and supplies products to the sugarcraft industry, including coloured edible glitters, dusts, sprinkles and food paints. Real Good Food (RGF) said there are “considerable synergies” between Rainbow Dust and its baking ingredients business, Renshaw. RGF is made up of a sugar distributor, Napier Brown, and baking ingredients, jams and sweet bakery products suppliers Whitworths Sugar, Renshaw and R&W Scott. The group will pay an initial fee of £4m, but that could increase by a further £3.5m depending on an earn-out, based on gross margin achieved in the 12 months following completion of the acquisition. The £4m payout has been funded in cash by a new banking facility with Lloyds Bank. Gary Brown and Carol Brown, the two founding directors of Rainbow Dust, will continue to run the company as a standalone business within RGF, which says it sees no effect on jobs at Rainbow Dust, other than an increase in its headcount in line with growth plans. Pieter Totté, RGF executive chairman, said: “The increasing popularity of cake decoration has become a global phenomenon. “We are excited by the growth prospects which this market offers and we will look to build on the knowledge and expertise which both Renshaw and Rainbow Dust possess to become a world leader in the sector. “This acquisition is the first of a number of initiatives designed to refocus our corporate strategy and deliver increased shareholder value.”
Posted on: Tue, 27 Jan 2015 12:07:43 +0000
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