Print
	Email
	Text size
	Comment

Finsbury Food Group plc has acquired a manufacturer of gluten free breads and morning goods together with its gluten free pre-mixes producer to complement the group’s health sector.

Yorkshire Farm Bakery (YFB) and A & P Foods (A & P) were bought from the Arnett family for up to £8.9 million, £4.8 million of which will be paid on completion, with the remainder payable in stages. Three members of the family are to remain with the business.

Finsbury created a new trading company, Livwell, to complete the acquisitions.

Commenting on the acquisitions, Finsbury Food Group’s chief executive Dave Brooks, said: “The UK retail market offers scope for growth as more and more consumers choose a wheat-free diet, and the UK medical prescription market, which is twice the size of the retail market, brings new opportunity. There is also scope to develop a stronger export business as awareness grows in Europe.”

YFB manufactures celebration cakes, low fat cake slices and artisan, organic and gluten-free bread and morning goods, from a freehold site in Hull. Established in 1983 as a general wholesale bakery, the business entered the gluten-free market in 2000 and has since developed into a dedicated gluten-free site.

A & P shares the same site in Hull, producing gluten free pre-mixes for YFB, as well as United Central Bakeries (UCB), which is part of the existing Finsbury Group. The business focuses primarily on the UK’s major multiple grocers, from where it derives over two thirds of total sales.

YFB and A & P achieved combined sales of £7.3 million and EBITDA of £700,000 in the year ended March 2007, with forecast sales for the year to March 2008 being no less than £8.5 million and EBITDA no less than £1.4 million. Acquired net assets are valued at £3.7 million.

Comments [0]