The cake division of McCambridge Group has been acquired through a management buy-in (MBI) and it now has plans to grow into the ‘pre-eminent’ supplier private label and branded cakes in the UK retail and foodservice sectors.

NGBI Private Equity is backing Andrew Johnson as part of the MBI, with Johnson set to become chief executive of the business through the deal. The business will also be re-named on completion of the deal.

The undisclosed transaction marks the second time Johnson has been involved in an acquisition following his lead role during the buy-in of Elisabeth the Chef in 2005, a private equity-backed supplier of chilled private label cakes to UK supermarkets.

Johnson says, ‘Consistent with my previous work growing other private label suppliers, my focus will be to stimulate the market by focusing on innovation and investing in new equipment to make us simply the best supplier of cakes, tarts and sweet pies in the UK.’

According to Johnson, he has been working with NBGI Private Equity for ‘a number of years’ to find potential opportunities.

As part of the deal, NBGI Private Equity investment director Richard Babington will now join the board of McCambridge Group and sit alongside Johnson.

Babington comments, ‘We are delighted to be backing Andrew in his second MBI into the food sector after a long search, working closely with him, to identify the right buy-in opportunity for his skills.

‘The buy-out of McCambridge’s cake division is consistent with the acquisition strategy underpinning NBGI Private Equity’s four other previous MBIs in the UK food sector, namely the purchase of a cash-generative, asset-heavy business with scope to grow and at a competitive multiple.’