A Merseyside bakery products manufacturer has acquired a Portuguese business that makes the increasingly popular pastel de nata custard tarts. Tony McDonough reports

Wirral bakery firm Baker & Baker has acquired Portuguese custard tart maker Peipen.

Based in Peniche, just to the north of Lisbon, Peipen is a leading producer of authentic, largely handcrafted pastel de nata. These are traditional custard tarts that are increasingly popular in the UK.

Peipen has been a direct supplier to Baker & Baker for a number of years. Its factory produces around 1,000 tonnes of products a year. There is scope for Baker & Baker to introduce additional product lines and equipment.

Based in Bromborough, Baker & Baker was formed from the sale of a division of a global bakery giant in April 2021. In April this year it reported its first full-year sales had hit £380m. This is 12% higher than its last year as part of US-based CSM Ingredients.

In August the firm opened a new office in Poland as it looks to expand in Eastern Europe. Based in Warsaw, the base will employ seven people. They will work across the firm’s logistics, sales and marketing functions.

Around 60 people working at the Peniche site in Portugal have been transferred to Baker & Baker from the start of September. Pastel de nata now sells across the UK and large paths of continental Europe.

Baker & Baker’s pastel de nata portfolio has delivered strong annual sales. It anticipates further growth and customer listings following the acquisition of Peipen’s operations.

The Peniche site is a modern bakery manufacturing facility originally owned by Unilever. It has a total footprint of around 54,000 sq ft. Workers make other non-bakery product lines, which will be discontinued by the end of 2022.

This will further facilitate additional capacity as the site becomes fully focused on speciality bakery products. Baker & Baker has acquired the order book, all equipment and machinery, and has assumed full responsibility for the personnel.

Peniche is the third manufacturing location operated by Baker & Baker in Portugal, in addition to Santo Tirso and Sāo Joāo da Talha. It follows long-term organic growth in the Iberian region.

John Lindsay, European chief executive at Baker & Baker, said: “We’re thrilled to have concluded the acquisition of Peipen. It’s a strong business that has supported us as a supplier for many years.

“The facility complements our existing portfolio by adding an attractive, core bakery lin. It supports our move towards developing our speciality laminated business in our growing Iberian market and quickly adds much needed capacity.”