FDBusiness.com

Finsbury Food Group to Acquire Fletchers Group For £56 Million

 Breaking News
  • Royal Unibrew Completes Acquisition of French Lemonade Business Royal Unibrew, the Denmark-based beverages group, has completed the acquisition of Etablissements Geyer Fréres for an enterprise value of DKr660 million (€88.5 million) financed by bank debt. The acquisition of Etablissements Geyer Fréres will give Royal Unibrew increased access to the French soft drinks market and will further strengthen its export portfolio. Employing about 100 [...]...
  • Private Label Outperforms FMCG Brands in Europe Private label continues to grow across Europe and is now outperforming brands in the majority of markets measured by big data and technology expert for consumer FMCG industries, IRI in its analysis of private label performance across eight major Western economies markets (UK, France, Germany, Greece, Italy, Spain, Netherlands and the US) during 2017. Growing +4% year on [...]...
  • Meat & Poultry – Future-proof For Success The meat market remains fast-moving and competitive. As part of this processors and retailers are always looking for a point of differentiation. As well as new product development, this can mean new pack formats. Convenience remains a major driver here but this has to be matched by the ability to maintain product quality and freshness [...]...
  • Ready Meals – Not Ready For the Future New research (1) published by Eating Better, a powerful alliance of more than 50 organisations, shows that supermarkets need to shake up their ready meal ranges. They are not catering for the growing number of flexitarian customers who are cutting back on their meat eating for their health and the health of the planet (2). [...]...
  • Top 100 Largest Spirits Brands Revealed The world’s most popular alcoholic drink in 2017 was the South Korean soju brand Jinro, owned by Hite-Jinro, according to the IWSR Real 100, the definitive ranking of the world’s largest spirits brands by volume. Selling almost 76m nine-litre cases, Jinro retains its number one position from last year, and once again by a staggering [...]...

Finsbury Food Group to Acquire Fletchers Group For £56 Million

Finsbury Food Group to Acquire Fletchers Group For £56 Million
October 14
11:38 2014

Finsbury Food Group, which is one of the UK’s leading cake and bread bakery goods manufacturers, has agreed to acquire the Fletchers Group, which supplies morning goods and specialist bread products to leading UK grocery retailers and foodservice customers, for £56 million from private equity firm Vision Capital.

The enlarged group will be one of the largest speciality bakery groups in the UK, with sales approaching £300 million and a broad spread of customers across the food retail and foodservice channels.

Vision Capital acquired Fletchers from Northern Foods plc in 2007, and since that time has executed a significant turnaround plan resulting in a step change in profitability at the company. Under Vision’s ownership Fletchers has developed high quality products across a broad category of fresh and frozen baked goods, particularly in morning goods. In addition Fletchers has built a large and growing foodservice business, which has the opportunity for further innovation and growth. The Fletchers business will complement Finsbury’s existing cake and bread manufacturing business and provide additional sales opportunities for the combined company, harnessing Fletchers’ long established customer relationships.

The agreement is subject to regulatory and shareholder approval.

FletchersGroupBreadProductionAndrew Rich, Partner at Vision Capital, says: “Fletchers is a strong, profitable and growing Company with a leading position in the fresh and frozen baked goods industry.  Finsbury is the ideal partner to take Fletchers into the next phase of its development and the combined Group is well positioned to prosper.”

John Duffy, CEO of Finsbury Food Group, says: “The acquisition of Fletchers is a transformational development for Finsbury Food Group, and will add scale to the effect that together we will be one of the largest speciality bakery groups in the UK. Fletchers is a highly complementary business, which broadens the Finsbury UK speciality bakery product, customer and channel growth potential and will provide a strong platform for the Group to address the Foodservice markets. We believe the enlarged Group will be in a strong position for new licensing arrangements, joint ventures and stronger customer and brand relationships.”

The total consideration payable for Fletchers is approximately £56.0 million on a debt-free/cash-free basis. Finsbury will fund the deal through a significantly oversubscribed placing of new ordinary shares raising £35.0 million at 59p and new debt facilities. Finsbury directors expect the acquisition to be earnings enhancing during its first full year of ownership and that is will allow the company to benefit from significant cash generation that will support a progressive dividend policy for the enlarged group going forward.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements