LONDON (Alliance News) - Finsbury Food Group PLC Wednesday said it has proposed a deal to acquire cake supplier Johnstone's Just Desserts out of administration.
Finsbury, which did not provide any financial details on the transaction, said the acquisition of Johnstone's, which supplies cakes to national coffee shop chains, will boost its presence in the foodservice cake channel and particularly in the high-growth coffee shop segment.
The completion of the acquisition is conditional on the finalisation of property lease details, which both Finsbury and administration advisers FRP are currently working on.
"Johnstone's Just Desserts will be a bolt on acquisition and is in line with our strategy to diversify into new channels. This illustrates the group's continued reach into the foodservice 'out of home eating' market and the broadening of our product offering and customer base," said Finsbury Food Chief Executive John Duffy.
Shares in Finsbury were up 0.2% to 79.15 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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