Inter Link Foods has made its biggest takeover, of Yorkshire Cottage Bakeries It claimed to be now the UK's second largest baker after RHM's Manor Bakeries.
Manor has also been active, with the completion of an investment at a factory in South Wales which makes cakes for Marks & Spencer and an £8m relaunch in January of Mr Kipling cakes.
RHM insisted that it was not withdrawing from the own-label market, despite Manor dropping what it said was an unprofitable jam tart contract with Tesco. Inter Link took on the contract.
Yorkshire is costing Inter Link a maximum £12.25m and has two factories in Bradford and one in Manchester. The 290 employees make own-label, branded and licensed products, including Christmas cakes, buns and rolls.
Yorkshire, which has spare capacity, made an estimated £2m profit in 2004 on a £9.9m turnover.
