Cake and speciality bread maker Finsbury Food Group has announced that it has acquired the cake businesses of Enterprise Food Group, California Cake Company and Campbell’s Cake Company as well as United Central Bakeries Limited. All the business acquired are based in Scotland.
The acquisitions maintain the group’s current focus on the bread and cakes sectors, areas where the group can achieve its stated aim to be the best at what we do, Finsbury said. The businesses being acquired all have strong management teams, innovative niche and market-leading products, and strong relationships with the multiple retailers, it said.
Finsbury is paying a maximum consideration of £7.4m (US$12.7m) to Enterprise for California and Campbell’s, of which £3m is deferred and conditional. In addition Finsbury will be assuming responsibility for clearing £3.4m of intra-group debt with Enterprise. The maximum consideration for UCB is £2.5m, of which £0.5m is a contingent deferred payment. Both deferred payments are subject to future profitability, the results of which will be known during the current financial year.
California was founded in 1984. The business supplies to the major supermarkets in the UK with a focussed product range that centres on low and full fat cake slices. Approximately 25% of its current sales are derived from low fat products under the Weight Watchers brand, with the remainder from retailer brands. California employs over 200 members of staff covering seven day production. Turnover is in the region of £12m, with capacity to grow. The company operates out of a leasehold factory and warehouse located in Coatbridge, near Glasgow.
Campbell’s was incorporated in 1994 and is based in Twechar, near Glasgow. It is the market leader in cold set (no bake) products such as caramel shortcake, shortbread and Tiffin. It manufactures own label shortcake and shortbread for the UK’s blue-chip retailers such as Asda, Sainsbury, Tesco and Co-op. Turnover is in the region of £2m per year. The Twechar site is leasehold and employs around 50 staff.
UCB was incorporated in March 1989 and is situated in Bathgate, near Edinburgh. It has extensive product capability, with the current range focussed upon potato cakes and scones, gluten free breads and Yum Yums. It supplies major multiples, including Asda and Tesco, plus the larger foodservice companies. The Bathgate site has undergone continuous improvement due to investment in plant and equipment, and has in the region of 200 staff employed there. The business has a turnover of approximately £10m, but with significant capacity to grow in its 100,000 sq ft freehold site.
“I am delighted to be able to announce the completion of these acquisitions; the businesses will bring new skills and expertise into the group and fit our acquisition criteria of having strong management teams already in place and being the market leaders in their respective fields,” said Dave Brooks, Finsbury Food Group plc’s chief executive. “We look forward to welcoming them into the group and working together to realise their full potential through organic growth, whilst maintaining the levels of quality, customer service and innovation for which we are known.”