Kendal Nutricare, the UK infant-formula manufacturer, has bought a facility from local food heavyweight Premier Foods.

The factory in Knighton, in Staffordshire in the English West Midlands, was bought by Kendal Nutricare’s subsidiary Excelsior Foods.

Financial details have not been disclosed.

Mr Kipling cakes and Ambrosia custard brands owner Premier announced in January last year that it proposed to close its Knighton Foods powdered desserts and drinks factory, putting around 300 jobs on the line.

It said the facility was “not aligned to the group’s branded growth model strategy and is marginally unprofitable at trading profit”.

In local authority Stafford Borough Council’s announcement that the site is now under new ownership, it said around 100 jobs would be created there by Kendal Nutricare/Excelsior as part of a “multi-million pound investment for a fully functioning operation over the next two years”.

It said recruitment for some roles has already started, including laboratory assistants, production supervisors and HR and IT support.

The facility will focus on “dietary and nutritional products as well as supporting the growth of wider group activities”.

Kendal Nutricare is based in the Lake District in north-west England and produces the Kendamil and Bonya infant-formula brands.

Its CEO Ross McMahon said: “The purchase of this site shows our continued commitment to domestic manufacturing and supporting the world class British dairy industry.

“Like the Kendal site which we took ownership of in 2015, the Stafford site has a rich history and experience in food and drink production. It would have been a great shame to lose this site from the Staffordshire area and rural community.”

Siobhan Fotheringham, international business director for the group, added: “The Staffordshire location was a great option for us given the dairy industry on the doorstep, local knowledge of spray drying milk powders for nutritional products and the council’s willingness to work with us to bring good employment opportunities back to the area.”

In its last set of published annual accounts, for the year to 31 March 2023, Kendal Nutricare reported turnover of £94.9m ($119.6m), up from £34.1m 12 months earlier, while operating profit of £39.6m was up from £6.7m in 2022.