Greencore Group plc (LON: GNC) has announced this Monday the sale of their cakes and desserts business in Hull to Bright Blue Foods Ltd, one of the UK’s leading ambient cake manufacturers, for an undisclosed sum.
The Irish convenience foods company which makes chilled desserts for Marks and Spencer said they agreed to sell after “a detailed review” indicated there were “no financially sustainable solutions to repair or replace the current facility, which is 126 years old and in need of significant refurbishment.”
The sale marks the exit of the UK ‘cakes and desserts’ market, part of a restructure operations plan revealed in November.
Last year in July, Greencore officially announced the closure date of their factory in Somerset, which employs about 400 people. The factory in Evercreech is expected to close in October 2018.
“Greencore can confirm that it is simplifying its corporate structure in the UK into two divisions. The new structure will deliver improved efficiency and a better ability to respond to its customers’ needs,” said the company last November.
In the UK, the Irish company is a supplier of own-label convenience food products to all the major supermarkets.
They employ approximately 16,000 people in 31 manufacturing facilities across the UK and the US. On average they manufacture around 1.5 billion sandwiches, more than 600 million salads and lunch kits, and 140 million ready meals every year.
The buyer, Bright Blue Foods, is one of the UK’s leading cake manufacturers and retailer of own label cakes. Based in Blackburn, Lancashire they supply retailers across the UK and Continental Europe.
Greencore confirmed today in the agreement proposal that the current production in Hull will remain in place until April 2018.
As of this morning shares were down 2 percent, trading at 204.5p.