Samworth Brothers, the company behind brands such as Ginsters and Soreen, has agreed a deal with Leicester City Council to lease 1.7 acres of land, in a bid to continue expanding its operations.
The food giant will lease the land at Ashton Green, with an ‘option to buy’ clause once the lease expires.
Samworth Brothers said the plan would allow it to meet its expansion plans at the site.
The company acquired more than 14 acres of land at the site almost two years ago, and has invested around £17M in the bakery since then.
The manufacturer’s group executive director Paul Davey said: “Our Ashton Green site, part of our Bradgate Bakery, has gone from strength to strength since it was opened in late November 2014.
“More than 400 new jobs have been created since then, and we expect the bakery to grow further in the future.”
Leicester City mayor Sir Peter Soulsby said the deal made mutual sense for both parties.
“We are talking about a piece of land that has no particular use for us, but is very important for them,” he said.
The announcement of the deal came two months after Samworth Brothers applied for planning permission to build a new distribution hub. Only a short 10 minute drive would separate the company’s Ashton Green bakery and the proposed distribution centre at Leicester Distribution Park.
At the time, Samworth Brothers MD Paul Bennell said the proposed distribution hub would “extend our capacity locally, and mean all our county businesses will have the capacity for further business growth”.
He added: “We will have leading distribution facilities allowing our businesses in Leicester and Leicestershire to prosper and grow.”