FIF.L Regulatory News (FIF)

2 Oct 2007 07:01

Finsbury Food Group PLC02 October 2007 Date: 2 October 2007On behalf of: Finsbury Food Group plc ("Finsbury" or "the Group")Embargoed until: 0700hrs Finsbury Food Group plcAcquisition of Anthony Alan Foods Ltd Finsbury Food Group plc (AIM: FIF), a leading manufacturer of premium andcelebration cakes, low fat cake slices and speciality, organic and gluten freebreads, is pleased to announce today the acquisition of Anthony Alan Foods Ltd,one of the UK's leading suppliers of low fat cakes. Anthony Alan Foods is a sales and marketing business which has, under licencefrom Weight Watchers, the rights to distribute ambient cakes using the WeightWatchers brand in the UK and Ireland. The company was founded in 2001 to developa low fat cake brand in partnership with Weight Watchers, and now directlysupplies into the majority of the UK and Ireland's food retailers. Sales in theyear ended March 2007 were £11.60m, generating a pro-forma profit beforeinterest and tax of £0.70m. The acquisition of the entire issued share capital will be for a total maximumconsideration of £3.75m. £0.35m is payable on completion and £0.50m contingenton achieving certain performance targets for the year to March 2008. A furtherpayment of up to £2.90m will become due in November 2009 provided that theWeight Watchers licence is renewed for a further three years. The totalconsideration will be funded by a combination of a £2.10m term loan from theGroup's bankers, HSBC Bank plc, and internal funds. According to TNS (April 2007), the Weight Watchers brand is the largest in thelow fat cake sector with a market share of 58%, and is up 15% year-on-year. The acquisition complements the Group's focus on the premium, celebration andhealth sectors - areas where it believes there is significant growth potential. Commenting on the acquisitions, Dave Brooks, Finsbury Food Group plc's ChiefExecutive, said: "Finsbury Food Group currently produces nearly 60% of the Anthony Alan Foodsproduct range. Through this acquisition, we will be able to drive the growth ofthe business further and develop the product range, focusing at all times onbeing 'The Best at What We Do'. This addition to our Group gives us the marketleading position in low fat cakes to complement our leading position in thepremium and celebration cakes sectors." Commenting on their new partnership with Finsbury Food Group, Melanie Stubbing,Weights Watchers (UK) Ltd Senior Vice President, said: "We have enjoyed a fantastic relationship with Anthony Alan Foods, and the teamhas done a great job establishing Weight Watchers cakes as the best selling lowfat cake range in the UK. We are now delighted to be working with one of theUK's largest cake manufacturers to develop that category even further. WeightWatchers is the 14th largest food brand in the UK, and with Finsbury's support,we can continue with our aim to break into the top 10". - Ends - For further information: Finsbury Food Group Plcwww.finsburyfoods.co.uk Dave Brooks (Chief Executive) 07831 787 382 Redleaf CommunicationsEmma Kane/Sanna Lehtinen 020 7822 0200 • Publication quality photographs are available via Redleaf Communications on the numbers shown above Notes to Editors: • Finsbury Food Group is the number 2 player in the UK cake industry a market valued at £1.46bn (TNS, July 2007) • The Group are market leaders in the premium bakery sector • Its strategy is to build a significant food group in core areas, both organically and by acquisition • Finsbury aims to be "The Best at What We Do" This information is provided by RNS The company news service from the London Stock Exchange