Dairy-based ingredients business Meadow Foods has acquired inclusions, decorations and toppings supplier Nimbus Foods.

Operating from a factory in Dolgellau, Wales, Nimbus supplies customers in markets including bakery, confectionery, ice-cream, desserts and cereals. The business was owned by international ambient food group Valeo Foods prior to the deal.

Meadow Foods, which last year received investment from private equity firm Exponent, said the move was in line with its strategic objective of growing through organic expansion and acquisition.

“Nimbus fits perfectly with our growth strategy of pushing further into the value-added ingredients space,” said Meadow Foods chief executive officer Mark Chantler.

He added there was a large customer overlap between the businesses, and that the deal would enable Meadow to strengthen its position as a leading supplier of confectionery ingredients.

“Nimbus is a respected and proven food manufacturing business and the acquisition allows us to expand our portfolio into new product areas while also utilising the many synergies between the businesses, including the high customer crossover, product knowledge and manufacturing expertise.”

Meadow Foods employs more than 400 people across four sites in Chester, Peterborough, Holme-on-Spalding-Moor and Dolgellau.