FDBusiness.com

Finsbury Food Group, a leading UK manufacturer of cake, bread and gluten-free bakery goods, has entered into a new joint venture agreement with Genius Foods, the gluten-free bread company created by Edinburgh-based chef and writer Lucinda Bruce-Gardyne. Finsbury and Genius are expanding their existing relationship through the introduction of additional gluten free products to be sold under the Genius brand and will therefore operate as contractual joint venture partners within the UK fresh bakery goods sector.

John Duffy, chief executive of Finsbury Food Group.

The joint venture agreement also incorporates an option for Genius to buy Finsbury’s United Central Bakeries and Livwell subsidiaries for a consideration of £21.0m, at any point within the next twelve months. UCB and Livwell produce Finsbury’s gluten-free products, as well as yum-yums and potato scones. In the year ended 30th June 2010, UCB and Livwell recorded revenues of £23.1m and profit before tax (after group costs) of £1.0m, which in the event of the option being exercised will no longer accrue to the Finsbury Group. In the event of the option being exercised the proceeds of the sale will be used by Finsbury to repay debt and for general corporate purposes. Genius has also undertaken to transfer the potato scone and yum-yum business back to Finsbury.

“We have enjoyed a successful working relationship with Genius, and believe that this joint venture will cement and develop this relationship further,” says John Duffy, chief executive of Finsbury Food Group. “We also believe the joint venture will give added momentum to the fastest growing area of our business and we look forward to working with Genius to drive forward our market leading position for the longer term.”