Finsbury Food Group to Acquire Fletchers Group For £56 Million

 Breaking News
  • UK Water Drinks Approach 4,000 Million Litres UK consumption of water drinks rose 7% in 2017 to nearly 4,000 million litres, with a retail value of £3.1 billion, according to a new report from global food and drink experts Zenith. Sales of plain bottled water in retail packs increased by 8% to over 3,100 million litres, while volume through bottled water coolers [...]...
  • Nestlé Brings Innovative Nitrogen Infused Coffee to the UK Nestlé is launching a brand new product for coffee fans in the UK and Ireland. Nescafé Azera Nitro is a coffee drink infused with nitrogen for a smoother taste. It will be available in Americano or Latte flavours. Nescafé Azera Nitro Americano is a refreshing and smooth black coffee infused with nitrogen. Nescafé Azera Nitro [...]...
  • ADM Realigns Business Segments to Further Accelerate Growth Archer Daniels Midland Company (ADM) has announced the realignment of its business segments across four units – Carbohydrate Solutions, Nutrition, Oilseeds and Origination. The new segments better reflect ADM’s operating structure and will enable the company to further highlight the differentiation of its product and service offerings and enhance its ability to respond to the [...]...
  • Highland Spring Selects Mainsaver CMMS Spidex has announced that Highland Spring, a leading supplier of natural source bottled spring water, has selected Mainsaver CMMS to support best-practice maintenance at its plant in Blackford, Perthshire. The new facility, part of a £50 million investment programme, officially opened in July 2017 and was designed to increase Highland Spring’s production capacity by 50 [...]...
  • Ornua Delivers Record Revenue Ornua, Ireland’s largest exporter of Irish dairy products which supplies to over 110 countries worldwide, has reported record revenue of €2.1 billion for the year ended 30 December 2017. It marks the first year of Ornua’s new five-year growth plan, ‘Ornua 2021’, which positions the business as a leading global dairy organisation that delivers results [...]...

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



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here