The deal, which was announced yesterday (August 26) and backed by finance from HSBC, as well as working capital from BNW, will allow the Preston-based bakery ingredients supplier to target national bakers, it said.
BNW’s total turnover is expected to reach £72.2M by the end of September, while BNS has an annual turnover of £31.7M, bringing the newly formed firm’s turnover to £103.9M this year.
Mark Tomlinson, chief executive of BNW, said: “The acquisition of BNS is part of our commitment to invest in the baking industry in the UK.
‘Increasingly competitive’
Bako in figures
- £103M turnover
- 330 employees
- 50 years old
“Markets are becoming increasingly competitive and to continue to grow successfully, we were keen on expanding our reach.”
The deal was originally reported in May this year, but was subject to approval from the Competition Markets Authority (CMA).
The CMA cleared the deal in July and said: “The transaction will bring together two highly complementary organisations and will build on the strengths of both parties to continue to deliver excellent products and service to customers.”
Targeted by the new firm
Businesses such as large national bakeries, restaurants and café chains will be targeted by the new firm.
It had been Tomlinson’s ambition to expand the firm in recent years, and the deal followed the announcement of Bako’s acquisition of Bako London & South East in July 2013.
Last year BNW celebrated its 50th anniversary and in 2013, it was awarded the Environmental Management System accreditation ISO14001 in recognition of its continued improvement of its quality systems.
At the time, BNW’s quality manager Jane Clarkson said: “The environment is paramount in many companies, both in terms of reducing in-house costs, such as electricity, but also in showing that business can play its part in tackling the challenge the wider community faces to protect and preserve the environment.”