A Worcestershire-based food ingredient business has acquired a Midlands rival.
Orchard Valley Foods in Tenbury Wells has bought Daventry-based Food Ingredients International with funding from Lloyds Bank.
The bank's SME team in Hereford arranged £500,000 of medium-term funding to support the deal, alongside an existing £1.5 million invoice discounting facility from Lloyds Bank commercial to support working capital requirements.
Founded in 2004, Orchard Valley Foods designs, develops and supplies confections, edible decorations and powder food ingredients for customers in the food manufacturing, wholesale, foodservice and retail sectors from a 25,000 sq ft base.
It says the acquisition of Food Ingredients International brings additional capabilities to the company's existing operations, significantly increasing both its customer and product portfolio and positioning it for further growth and expansion.
It currently has 54 full-time staff and now expects to take on 20 temporary staff over the next four months.
The facility provided by Lloyds Bank uses funding from the Government-backed Funding for Lending scheme which enables businesses to take advantage of reduced borrowing costs in order to boost their growth plans and support future investment.
Orchard Valley Foods posted turnover of £16.5 million in 2013/14 and said it expected this to surpass the £30 million mark within four years.
Managing director Mike Forrester said: "The completion of this strategic acquisition will have a hugely positive effect on the business and its future ambitions."
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