Real Good Food completes £4m Rainbow Dust acquisition

20th Jan 2015 15:49

Bakery products manufacturer and supplier Real Good Food (RGF) has looked to cement its position in the increasing "global phenomenon" of cake decoration with the £4m acquisition of Lancashire-based cake decorating products business Rainbow Dust Colours.The group said the initial sum, which was funded in cash by a new facility with Lloyds Bank, could increase by a further £3.5m depending on performances based on gross margin achieved in the year following completion of the deal."The increasing popularity of cake decoration has become a global phenomenon," said group executive chairman Pieter Totté."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."Preston-based Rainbow Dust, a supplier of products to the sugarcraft industry, employs 28 staff and RGF said there were "considerable synergies" between the Lancashire and Renshaw, its own baking ingredient division.RGF shares were up 1.35% to 37.50p at 15:58 on Tuesday.