UK-based Real Good Food has announced the sale of its snack bar subsidiary Brighter Foods to The Hug Group for £43 million.
Brighter Foods is a manufacturer of healthy snack bars for global confectionery, wellness, and breakfast food brands.
The deal will allow Real Good Food to reduce debt, pay some of its pension deficit and provide working capital to support its growth.
Mike Holt, Real Good Foods executive chairman, said: “We are very pleased with the disposal which crystallises substantial value for the group and enables us to halve our debt burden at a stroke, whilst materially improve the funding of the pension scheme. It also provides a basis for further balance sheet restructuring, as we look to accelerate and maximise value within Renshaw and Rainbow Dust Colours.”
“Brighter highly complements our developed vertical integration strategy and strengthens our capabilities in the growing convenience and snack bar market. Nutritional bars are a high growth category for THG, with significant product extension opportunity across all our brands,” said Matthew Moulding, executive chairman and CEO at The Hug Group.
Source: Food Manufacture