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RNS Number : 1783O
Finsbury Food Group PLC
30 January 2023
Date: 30 January 2023
On behalf of: Finsbury Food Group Plc ("Finsbury", the "Group" or
the "Company")
Finsbury Food Group Plc
Acquisition of Lees Foods Limited
Finsbury Food Group Plc (AIM: FIF), a leading UK speciality
bakery manufacturer of cake, bread and morning goods for both the
retail and foodservice channels, announces that it has acquired
100% of the share capital of Lees Foods Limited ("Lees"), a leading
manufacturer of meringues, teacakes and snowballs.
Established in 1931, Lees employs more than 200 staff at its
site in Coatbridge, Scotland. Lees has a UK market-leading position
in the manufacture of meringues and has significant capability in
the sweet treats category, adjacent to Finsbury's existing markets.
The acquisition is in line with Finsbury's strategy to diversify
its product capability into areas with high growth potential.
Lees has a broad customer base and holds strong supply
relationships with the leading UK supermarkets in addition to
foodservice and export customers . The Finsbury Board believes that
it will be able to leverage the scale and breadth of the Finsbury
commercial team and licensed brand portfolio to drive incremental
growth for Lees. In addition, there will be scale cost synergies
over time.
Lees' adjusted underlying EBITDA is GBP0.9 million from adjusted
underlying net sales of GBP21.6 million [1] . The acquisition will
be earnings accretive immediately in FY23.
The consideration for the acquisition payable by Finsbury is a
cash amount of GBP5.7 million, on the basis that Lees is acquired
cash and debt-free and with an agreed level of working capital. The
consideration is being funded entirely from the Group's existing
debt facilities.
John Duffy, Chief Executive of Finsbury Food Group Plc,
commented:
"We are delighted to announce the strategic acquisition of Lees
Foods Limited, as we consolidate our position in the sweet treats
sector and grow our manufacturing presence in Scotland.
Lees currently has a well-established position in the UK
meringue category and strong relationships across a high quality
and diverse customer base. This provides Finsbury with the
opportunity to build upon both businesses' existing retail
relationships and unlock further commercial opportunities,
including out of home. We look forward to welcoming Lees to the
wider Group."
[1] Based on Lees' unaudited management accounts for the 12
months ended 31 December 2022.
Contact:
Finsbury Food Group
John Duffy (Chief Executive) 029 20 357
Steve Boyd (Finance Director) www.finsburyfoods.co.uk 500
Panmure Gordon (UK) Limited
Oliver Cardigan / Atholl Tweedie
(Corporate Finance) 020 7886
Rupert Dearden (Corporate Broking) 2500
Alma PR
Sam Modlin
David Ison 020 3405
Matthew Young finsbury@almapr.co.uk 0205
Notes to Editors:
-- Finsbury Food Group Plc (AIM: FIF) is a leading UK and
European manufacturer of cake and bread bakery goods, supplying a
broad range of blue-chip customers within both the grocery retail
and 'out of home eating' foodservice sectors including major
multiples and leading foodservice providers.
-- The Company is one of the largest speciality bakery groups in
the UK and, together with its overseas division, has sales in the
financial year ending 2 July 2022 of GBP357 million.
-- The Company's bakery product range is comprehensive and includes:
-- Large premium and celebration cakes;
-- Small snacking cake formats such as cake slices and bites;
-- Artisan, healthy lifestyle and organic breads through to
rolls, muffins (sweet and savoury) and morning pastries, all of
which are available both fresh and frozen dependent on customer
channel requirements; and
-- Gluten Free bread, morning goods and cake ranges.
-- The Company is one of the largest ambient cake manufacturers
in the UK, a market valued at GBP1.06 billion (source: IRI 52 w/e
31 Dec 2022). The retail bread and morning goods market has a value
of GBP5.7 billion (source: Kantar Worldpanel 52 w/e 25 Dec 2022).
The retail Free From cake market is valued at GBP60 million
(source: Kantar Worldpanel 52 w/e 25 Dec 2022). The retail Free
From bread and morning goods market is valued at GBP173 million
(source: Kantar Worldpanel 52 w/e 25 Dec 2022).
-- The Company comprises a core UK bakery division and an overseas division:
-- The UK bakery division has manufacturing sites in Cardiff,
East Kilbride, Hamilton, Salisbury, Sheffield, Manchester, and
Pontypool.
-- Following completion, the Company will have an additional manufacturing site in Coatbridge.
-- The overseas division comprises the Company's 85% owned
company, Lightbody-Stretz Limited, which supplies and distributes
the Group's UK-manufactured products and third-party products,
primarily to Europe, and the Company's manufacturing facilities in
Rybarzowice and ywiec in Poland.
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