Private equity firm Vision Capital has acquired Northern Foods' speciality bread, chilled pastry, cakes and flour milling businesses for £160m.

The sale, which is expected to be completed in January and subject to shareholder approval, completes Northern Foods' disposal programme announced in May this year to sell 40% of its business as part of a radical restructure.

It includes Park Cakes, Fletchers Bakeries, Grain D'or, Kara Foods, Smiths Flour Milling, Pork Farms and Riverside Bakery.

The troubled food manufacturer had hoped to raise £200m from the sell-off, but together with the sale of its distribution business NFT earlier this year, has raised £211.2m.

“This disposal, together with the sale of NFT, completes our divestment programme in line with the objectives we set out in our business review. The early conclusion of this process is very positive for our staff and customers,” said Northern Foods CEO Pat O'Driscoll.

“We are pleased to have reached agreement with Northern Foods on the acquisition of this portfolio of business,” added Julian Marsh, chief executive of Vision Capital.