Preston-based BAKO North Western (Group) Ltd, has acquired sister company BAKO Northern and Scotland, for an undisclosed sum.
BAKO is a major distributor of food and non-food products to the bakery and associated food industries.
The financing from HSBC, which includes a mix of term debt and working capital facilities, will enable BAKO North Western to target business opportunities involving large national bakery, restaurant and cafe chains in further Northern and Scotland markets.
The deal is also expected to boost BAKO North Western’s annual turnover. By the close of September 2015, the business is expecting an annual turnover of £72.2m. The acquired entity, BAKO Northern and Scotland, is based in County Durham and has an annual turnover of £31.7m.
The acquisition will create a business with turnover in excess of £100m.
Mark Tomlinson, CEO of BAKO North Western, said: “The acquisition of BAKO Northern and Scotland is part of our commitment to invest in the baking industry in the UK. Markets are becoming increasingly competitive and to continue to grow successfully, we were keen on expanding our reach. Our partnership with HSBC has helped us do just that by giving us access to new areas where we can offer high levels of customer service, innovation and a wide product range.”
Jason Trigg, area corporate director, HSBC Manchester, said: “We are proud to support BAKO North Western and look forward to helping them achieve their growth aspirations.”