A newly-formed company headed by Graham March, former chairman of Northwich-based bread makers Frank Roberts & Sons, has acquired five bakeries from McCambridge Group for an undisclosed sum.

March set up D&G Foods Ltd in order to execute a management buy-in at the loss-making businesses, which have an annual turnover of about £17m and were part of Lancashire-based Inter Link Cakes before it went into administration in 2007.

The bakeries acquired were Aldreds the Baker in Ilkeston, Derbyshire; Queen of Hearts in Oxford; Husseys in Thatcham, Berkshire; Tredinnick Fine Foods in Newton Abbott, Devon and West of England Bakeries in Plympton, Devon.

The Husseys bakery has already been closed down with the loss of 40 jobs, leaving the new company with 210 employees.

March will be managing director and he has installed David Fearnley-Brown, an independent consultant who has previously worked for Frank Roberts & Sons, as operations director.

The purchase has been backed by Salford-based Venture Finance.

March, who was managing director of Holland's Pies for 20 years until 2005 and was on the board at Frank Roberts & Sons for two years until August 2008, said Dublin-based McCambridge, the maker of Soreen malt loaf, had lost focus on the businesses after acquiring Inter Link.

His plan is for Queen of Hearts to focus on cakes, Aldreds on bread and Tredinnick on pies and pasties. West of England Bakeries will be run as a standalone business.

He added: "We are really excited about this turnaround opportunity and are confident we can return the businesses to profitability within the next three years."

Mark Devine, McCambridge's director of finance and strategy, said the companies were sold as part of a strategy to dispose of non-core businesses.

D&G Foods was advised by law firm DWF and accountants DTE Corporate Finance.

Jon Close, corporate partner with DWF said: "The deal is really good news for all involved, particularly the employees, suppliers and customers. It was a great team effort on all sides of the deal which needed to happen in a tight timescale. With Graham and David's complementary sales and operational experience they make a very effective team."

Matt Beckley, partner at DTE Corporate Finance, added: "This was an extremely challenging but rewarding transaction. The DTE team worked with the management buy-in team from inception to completion on the turnaround nature of the business plan and addressed the needs of the various vendor stakeholders, as well as meeting the funders' requirements. Completion demanded great cooperation and teamwork amongst the management team and its advisors."

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