Samworth Brothers, the UK meals firm, has offered the manufacturers and inventory of its loss-making sports activities diet enterprise Sci-Mx to native dealer Supreme Imports.
However the deal doesn’t embrace the 20-strong Sci-Mx workforce, primarily based at its facility in Gloucester in south-west England. Their future stays unsure.
Supreme, primarily based in Manchester in north-west England, has acquired the Sci-Mx and Pro2Go manufacturers for an undisclosed sum and bought GBP1.3m (US$1.8m) of inventory.
Samworth, primarily based in Leicester within the English Midlands, purchased Sci-Mx, which manufactures merchandise reminiscent of protein bars and powders, in 2015, a transfer that took it into a brand new class. The corporate is best-known for its chilled and shelf-stable meals manufacturers reminiscent of Dickinson & Morris pork pies, Ginsters pasties and Soreen malt loaves. Additionally it is a private-label provider of comfort meals.
In a press release despatched to Simply Meals, Samworth stated: “Following the conclusion of a latest session, we now have confirmed to colleagues that the Sci-Mx enterprise will shut on thirty first July 2021. Regardless of sturdy ranges of funding and a extremely dedicated staff, the enterprise has been loss making for a number of years.”
Samworth stated it’s supporting Sci-Mx workers discover appropriate different roles, together with providing them redeployment to different components of the corporate.
“It’s by no means a simple determination to shut a enterprise. Nonetheless, the sports activities diet sector has modified dramatically over the previous couple of years,” it stated.
“We now have concluded that the enterprise will not be at a scale the place we are able to make it work and the degrees of funding that will be wanted to realize this don’t make good financial sense.”
Supreme Imports, which is listed on the London Inventory Trade sub-market AIM, is a producer, provider and model proprietor of client merchandise, together with different sports activities diet strains.
It stated in a press release: “The acquisition provides a lot of main and long-established retail manufacturers to the group’s rising sports-nutrition and wellness class throughout protein powders and dietary supplements.
“It can additionally allow Supreme to leverage the Sci-Mx and Pro2Go manufacturers to develop current relationships with retailers, in addition to cross-sell these manufacturers into Supreme’s vital shopper base and thru the group’s on-line platform.”
CEO Sandy Chadha added: “The acquisition not solely broadens our product providing and delivers additional scale to this section, but additionally leaves us ideally positioned to create extra gross sales traction throughout our intensive retail footprint in what’s turning into an ever extra vital class for the group.”
Supreme’s retail purchasers embrace Asda, Poundland, Iceland and Spar.