Real Good Food plc has agreed terms for the sale of the business and certain assets of its non-core trading business, Garrett Ingredients to Kent Foods for £1.8m. The sale is expected to complete on 20 April.
Garretts, which sources dairy, sugar and other specialist food ingredients and sells them to large, medium and small food manufacturers across the UK, has been part of Real Good Food plc since 2005.
The Board believes that the business has more in common with Kent whose skills and aptitude are better suited to managing its contracts, given Real Good Food's resources are being increasingly focused on serving the end consumer.
In the group's financial year ended 31 March 2017, Garretts contributed £21.3m of revenues and an operating loss of £0.9m. It had net assets of £1.9m as at 31 March 2017 and the firm expects to report a modest loss on the disposal.
Hugh Cawley, Chief Executive, said, 'We are pleased to have agreed the sale of this small, non-core business as part of our plan to improve the Group's performance.'