Real Good Food plc (LON:RGD) have announced their acquisition of a majority 84.33 percent stake in Brighter Foods.
The food company, which markets food for the health-conscious consumer, has agreed upon a £9 million deal with Welsh-based Brighter Foods.
Pieter Totté, executive chairman of Real Good Food, commented: “Brighter Foods fits well into our strategy to consolidate profitable well run businesses in niche areas of the food manufacturing industry”.
“Real Good Food investment will enable Brighter Foods to expand and improve its capacity and product range even further,” Totté added.
Brighter Foods, which has been in operation since April 2014, produces healthy snacks for diet control, gluten free, lactose free, low or no added sugar customers, as well as organic and fair trade snacking.
The senior management team of Brighter Foods are to retain a remaining 15.67 percent stake in the business, which will continue to be led by its founder Robin Williams. This will ensure transitional stability for the company, which operates in the town of Twyn in mid-Wales.
Williams confirmed the news, stating: “I have known Pieter for years and have worked with members of his team previously and I’m very pleased to be doing so again. They share our vision to invest in the business and to grow it further from the strong base we have established.
“I’ll be staying as CEO and together we have already agreed a headline plan to continue growing our manufacturing facilities in Tywyn. This is great news for the town and its people,” Williams continued.
According to the announcement, the agreed upon sum is set to be paid in two installments, with 50 percent on completion of the deal and the remaining 50 percent upon finalisation of the company’s audited accounts for the financial year.
Shares in Real Good Food inc are currently up 20 percent as of 12.11PM (GMT).