Warburtons has announced the acquisition of
Giles Foods, a manufacturer of garlic bread, dough balls, Danish pastries and
other international breads for supermarkets, restaurants and pubs. The deal is
said to be worth more than £10m and is part of Warburtons strategy to diversify
outside the traditional bread market.
Giles Food, which is majority owned by David and Shirley Rixon, makes a range of branded and unbranded artisan and international breads. Its biggest customer is Morrisons and the company, which employs more than 300 staff in two manufacturing sites in Milton Keynes and Warminster, has annual revenues of more than £25m. It operates under the Artisan Bakers brand.
Jonathan Warburton, the Chairman and Chief Executive of Warburtons, said: “Innovation in bakery is going to be the lifeblood of the future. To do that in our present bakeries would be challenging.”
Warburton said that Giles Foods would offer the company a “short cut” to innovation and establish Warburton as a “bakery brand rather than a bread”.
The acquisition means the Warburtons name could eventually appear on garlic bread products in supermarkets. “In the long-term we will be delighted if what is Giles Foods now is full of Warburtons products, but it is not a prerequisite,” Warburton added.
“To me, this [deal] is natural progress for a successful, well-invested business. We are not going to go and diversify into weird and wonderful things. We are going to build on our core strengths.”
Giles Foods will initially be run as a separate business within Warburtons with the existing management team remaining in place. Rixon, who is the Managing Director, said: “There was an enormous amount of interest from a broad range of potential partners, but Warburtons, its heritage and values, ultimately made the decision very straightforward.”
Giles Food, which is majority owned by David and Shirley Rixon, makes a range of branded and unbranded artisan and international breads. Its biggest customer is Morrisons and the company, which employs more than 300 staff in two manufacturing sites in Milton Keynes and Warminster, has annual revenues of more than £25m. It operates under the Artisan Bakers brand.
Jonathan Warburton, the Chairman and Chief Executive of Warburtons, said: “Innovation in bakery is going to be the lifeblood of the future. To do that in our present bakeries would be challenging.”
Warburton said that Giles Foods would offer the company a “short cut” to innovation and establish Warburton as a “bakery brand rather than a bread”.
The acquisition means the Warburtons name could eventually appear on garlic bread products in supermarkets. “In the long-term we will be delighted if what is Giles Foods now is full of Warburtons products, but it is not a prerequisite,” Warburton added.
“To me, this [deal] is natural progress for a successful, well-invested business. We are not going to go and diversify into weird and wonderful things. We are going to build on our core strengths.”
Giles Foods will initially be run as a separate business within Warburtons with the existing management team remaining in place. Rixon, who is the Managing Director, said: “There was an enormous amount of interest from a broad range of potential partners, but Warburtons, its heritage and values, ultimately made the decision very straightforward.”
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