Inter Link completes Soreen acquisition
completed its acquisition of the Soreen business, which gives it
control of the third-largest cake brand in the British market,
Soreen's malt loaf.
Inter Link Foods, the UK-based manufacturer and distributor of cakes, pastry products and confectionery, last month concluded its acquisition of the Soreen business, the leading British producer of malt loaf.
Inter Link paid £8.4 million for the Soreen business, and raised £6.1 million of the sum through a new share placing launched in January. Soreen, which is the third largest cake brand in the UK, was acquired from the bakery group Warburtons.
Alwin Thompson, chief executive of Inter Link, said at the time the acquisition was announced earlier this year: "The acquisition of Soreen serves to enhance Inter Link's customer base in addition to providing Inter Link with a well established and recognised brand. We believe that this acquisition and the strength of the Soreen brand will further our stated aim to become the number two supplier of cakes and pastries in the UK."
Inter Link manufactures and sells own label cakes and pastry products to major retail multiples and is involved in the distribution of cakes and confectionery to independent retailers and the food service sector. The group produces sponges, fruit pies, and celebration cakes at Crossfield Foods, low fat loaf cakes and cherry bakewell tarts at Shadsworth Bakery, and chocolate mini rolls and swiss rolls at Lisa Bakery.
It also owns the Newton House Bakery, which sells a range of small cakes, including fairy cakes and iced top buns, Cakes for the Connoisseur brand and The Creative Cake Company, which manufactures celebration cakes with licensed characters such as Bob the Builder, Spiderman and Harry Potter.
The addition of the Soreen business will help strengthen Inter Link's relationships with many of the major UK retail multiples through increased sales volumes and broader product offerings, as well as providing it with a chance to sell more of its current product range into Soreen's largest customers. The Soreen brand is well known, and will increase the share of sales from Inter Link's branded cake business, traditionally with greater margins.
Soreen is the market leader in the £22 million UK market for malt loaf, accounting for a 54.5 per cent share in the year to 15 September 2002, but the company also participates in the UK fruit loaf retail market (where it has a 12 per cent share) and the snack market, where it sells the pre-buttered sliced snack product Soreen Snack and a recently launched cereal bar.