Despite falling sales, luxury ice cream maker Hill Station has bought rival producer So Real Ice for £650,000 from the proceeds of a £3.3m share issue. The purchase of So Real Ice, which makes own label organic ice cream for Asda, Morrisons and Sainsbury's, represents the company's first acquisition since the ill-fated purchases of ice cream makers Loseley and Granelli in November 2005. Problems integrating them generated higher than anticipated costs, and the group's shares were suspended in November 2006 after banks refused to grant the company additional funding to stay afloat. Trading in the shares resumed in December that year after the company secured lending from existing investors. In January, Bill Mapstone, arrived as chairman and injected £1.1m into the company. He said the money raised through the share issue would provide sufficient working capital to stabilise the business and that £300,000 would be used to pay creditors. Hill Station announced the So Real Ice deal as it revealed like-for-like sales down 25% in the three months to August, with sales continuing to fall this month. The rising cost of raw materials and the wet summer weather were blamed for the downturn.