NBGI Private Equity has agreed to back a £23.5m management buy-in of the cake division of McCambridge Group, one of the largest producers of private label cake in the UK food industry.
The business, which operates from four primary manufacturing locations in the UK and a further facility in Poland, will be renamed once the deal closes.
Existing customers include the UK’s major supermarket chains.
The private equity backers are supporting a new chief executive, Andrew Johnson, who formerly led a buy-in into Elisabeth the Chef in 2004, another supplier of private label cakes.
NBGI’s investor director Richard Babington (pictured) said: “We are delighted to be backing Andrew in his second buy-in in the food sector after a long search, working closely with him to identify the right buy-in opportunity for his skills.”
Babington will join the board along with Johnson.
McCambridge is one of the leading bakery companies in the UK – baking one in ten of every retail pre-packed cakes and pastries in the UK.
It employs more than 1,100 people.