UK-based fresh prepared food producer Bakkavor has entered an agreement to acquire trade and assets of Blueberry Foods, a desserts business owned by Samworth Brothers.

Financial details of the deal have not been disclosed.

Bakkavor intends to fund the acquisition from its existing facilities with marginal leverage impact.

The acquisition of Blueberry will enable Bakkavor to further strengthen its position in the chilled desserts segment, as well as increase its offerings portfolio with hot desserts.

Bakkavor CEO Agust Gudmundsson said: “The acquisition of Blueberry is a great strategic fit for Bakkavor. Together with our recent addition of Haydens Bakery and a major investment at our site at Newark, our long-term commitment to growing our desserts category in the UK is clear.

“The team at Blueberry share our passion for providing outstanding service, quality and value to customers and we look forward to welcoming them to the Group.”

With nearly 420 employees, Blueberry operates from a custom-built facility in Leicestershire and produces a range of desserts that are supplied to grocery retailers across the UK.

“The acquisition of Blueberry is a great strategic fit for Bakkavor.”

Over the last 18 months, Blueberry has invested more than £10m ($12.8m) in order to upgrade its equipment to deliver new capabilities and competencies, as well as further expand its factory footprint.

Closure of the deal is subject to the completion of a TUPE process with affected employees and of other customary pre-closing conditions and is expected to take place in June.

Last September, Bakkavor acquired Haydens Bakery from Real Good Food in a deal worth £12m ($15m).