London-based baker Finsbury Food Group Plc, through its subsidiary Nicholas & Harris, has acquired rival Goswell Enterprises for £2.2 million in cash.

Goswell supplies a range of branded speciality breads (including Vogel and Cranks) to a number of UK supermarkets. The company generated a turnover of £5.4 million in the year ending October 2008.

Martin Lightbody, chief executive of Finsbury Food Group, commented: "Although the current economic climate remains challenging, we are committed to making appropriate investments in the business and we are delighted to be able to take advantage of opportunities such as this one."

Finsbury Food reported an increase in revenues of 11 per cent to £92.1 million, with pre-tax profits down by 45 per cent to £1.8 million.