Real Good Food plc (RGF) has acquired Rainbow Dust Colours, the Preston-based
supplier of cake decorating products with 28 staff, for an initial £4m.
For the 12 months to 31 July 2014 Rainbow Dust reported turnover of £3.3 million and achieved a trading profit before tax of £1.7m. As at 31 July 2014, it had gross assets of £4.9m.
The two founder directors of Rainbow Dust, Gary Brown and Carol Brown, will be joining RGF and will continue to run it as a standalone business within the RGF portfolio.
There are considerable synergies between Rainbow Dust and RGF's successful baking ingredients business, Renshaw, and the acquisition is expected to bring mutual benefits to the two businesses, particularly in developing new products, driving growth in exports and opening up new sales channels.
Pieter Totté, Executive Chairman, comments, 'The increasing popularity of cake decoration has become a global phenomenon. This acquisition is the first of a number of initiatives designed to refocus our corporate strategy and deliver increased shareholder value.'