UK bakery business Finsbury Food Group has acquired Scottish baked goods and meringue firm Lees Foods for GBP5.7m (US$7.1m).
Finsbury Food Group, one of the largest bakery groups in the UK, said Lees Foods would help “diversify” its portfolio and will lead to “cost synergies over time”, as well as expanding its presence in Scotland.
The deal, for 100% of the business, includes its manufacturing site in Coatbridge, Scotland, it said in a statement released today (30 January).
Leeds Foods, which produces meringues, teacakes and marshmallow-and-coconut snowballs, employs over 200 people and supplies UK supermarkets and foodservice channels. Its adjusted underlying earnings before tax were GBP900,000 from adjusted underlying net sales of GBP21.6m at its last financial update.
The deal is expected to be earnings accretive immediately this financial year.
Finsbury Food Group produces cake, bread and morning goods for both the retail and foodservice channels. It said: “Lees has a UK market-leading position in the manufacture of meringues and has significant capability in the sweet treats category, adjacent to Finsbury’s existing markets.”
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John Duffy, Finsbury Food Group chief executive, added: “We are delighted to announce the strategic acquisition of Lees Foods Limited, as we consolidate our position in the sweet treats sector and grow our manufacturing presence in Scotland.
“Lees currently has a well-established position in the UK meringue category and strong relationships across a high-quality and diverse customer base. This provides Finsbury with the opportunity to build upon both businesses’ existing retail relationships and unlock further commercial opportunities, including out of home. We look forward to welcoming Lees to the wider group.”
Finsbury Food Group also owns an 85% share in European supplier and distributor Lightbody-Stretz Limited, and manufacturing facilities in Rybarzowice and Żywiec in Poland.
It generated revenue of GBP357m in the financial year ending 2 July 2022.