18 Jun 2009 07:00
Date: 18 June 2009
On behalf of: Finsbury Food Group plc ('Finsbury', 'the Company', or 'the Group')
Embargoed until: 0700hrs
Finsbury Food Group plc
Acquisition of Goswell Enterprises Ltd
Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and morning goods, is pleased to announce today that its subsidiary Nicholas & Harris Limited, the producer of premium, organic and speciality breads, has acquired the entire issued share capital of Goswell Enterprises Ltd ('Goswell') for £2.2 million in cash.
Goswell supplies a range of branded speciality breads (including Vogel and Cranks) to a number of the UK's major supermarkets, their largest customers being Sainsbury's and Waitrose. Sales for the year to October 2008 were £5.4 million and pro forma EBIT for the same period was £0.4 million.
The consideration is made up of an initial payment of £0.5 million. The remaining £1.7 million will be paid in instalments over the next four years.
Martin Lightbody, Chief Executive of Finsbury Food Group, commented:
"We are pleased to welcome Goswell into the Finsbury family, enabling us to expand our speciality bread offering. Although the current economic climate remains challenging, we are committed to making appropriate investment in our business and are delighted to be able to take advantage of opportunities such as this one."
Colin Lyons, Managing Director of Goswell Bakeries Limited, commented:
"We are pleased that Nicholas & Harris is taking over control of the Vogel's, Cranks, Doves Farm and Caribbean Cuisine brands and we are certain that these brands will grow in strength under their stewardship."
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For further information:
Finsbury Food Group Plc www.finsburyfoods.co.uk
Martin Lightbody (Chief Executive) 07778 230 220
Lisa Morgan (Finance Director) 07771 712 720
Panmure Gordon
Katherine Roe/ Ashton Clanfield/ Callum Stewart 020 7459 3600
Redleaf Communications finsbury@redleafpr.com
Emma Kane/ Rebecca Sanders-Hewett/ Anna Dunkin 020 7566 6700
Publication quality photographs are available via Redleaf Communications
Notes to Editors:
Finsbury Food Group plc (AIM: FIF), is a leading manufacturer of premium and celebration cakes, low fat cake slices and artisan, organic and gluten free bread and morning goods
Finsbury Food Group is the No. 2 player in the UK cake industry; a market valued at £1.51 billion (TNS, January 2008)
Its strategy is to build a significant food group in core areas