UK cake maker Finsbury Food Group has entered into an agreement to acquire foodservice supplier Johnstone's Just Desserts from administrators FRP Advisory.
Johnstone's generated a turnover of around GBP9m (US$13.7m) in 2014. The company sells cakes to coffee shops. The deal includes Johnstone's production assets, stock and customer list, Finsbury said this morning (6 May). Financial details were not disclosed.
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By GlobalDataFinsbury, which supplies cake, bread and morning goods to UK retail and foodservice customers, said the acquisition signals the "escalation" of the group's entry into the foodservice cake channel. The group indicated it is targeting the higher growth coffee shop segment in particular.
Finsbury CEO John Duffy said: "Johnstone's Just Desserts will be a bolt-on acquisition and is in line with our strategy to diversify into new channels. This, illustrates the group's continued reach into the foodservice out-of-home eating market and the broadening of our product offering and customer base."
Finsbury said it plans to retain Johnstone's 150 employees and the group intends to "work with management" to speed the expansion of the company in the coffee shop segment.
Completion is conditional on the finalisation of property lease deals.
