Tommy Tucker placed the site on the investment market in order to utilise the funds from the sale to develop and expand its new complex in South Yorkshire.
The buyer purchased two self-contained units on the Hallcroft Industrial Estate in Retford, with a new 15-year lease being agreed for the popcorn manufacturer to continue to operate from the site.
Property consultancy Harris Lamb – who brokered the deal – said there had been an increasing trend in this kind of purchase, where a business wanted to free up capital while agreeing favourable terms to maintain a successful operation at its existing site.
Neil Harris, of Harris Lamb’s investment team, said: “In this case, Tommy Tucker Limited has traded from these particular premises for the past 14 years and, with the Retford factory being integral to its popcorn production operation, was keen to continue to trade at the facility while investing further into its new Dinnington facility.
“The business’ established reputation, low-risk profile and long-term local plans made this a very attractive acquisition for our client, who agreed to pay the full market value of the site, representing a Net Initial Yield of 7.4%.”
Established in 1988, Tommy Tucker manufactures a range of premium and own-label popcorn, snacks and confectionery under licence.
In 2015, the company acquired RJ Foods, allowing it to offer a growing portfolio of baked goods. The business has a net worth of £3.3m, according to Harris Lamb.
Meanwhile, last month, snack manufacturer Tayto acquired Northern Ireland-based popcorn company Pop Notch for an undisclosed sum, in a deal that included the company’s trademark, brand name and machinery.
It followed Tayto’s acquisition of a majority stake in popcorn firm Portlebay last year, which it described as a strategic expansion of the company’s snack manufacturing capabilities.