UK cake maker Finsbury Food Group has entered into a joint venture, through its United Central Bakeries (UCB) and Livwell subsidiaries, with Genius Foods.
The joint venture will see the two firms launch an additional range of gluten-free products to be sold under the Genius brand, and will therefore operate as contractual joint venture partners within the UK fresh bakery goods sector, the firm said today (23 December).
UCB is a subsidiary of Finsbury Group and a manufacturing partner of Genius.
As part of the deal, Genius will have the option to purchase the business and assets of UCB and Livwell for a consideration of GBP21m (US$32.4m), at any point within 12 months from this date.
UCB and Livwell are the subsidiaries of Finsbury which produce Finsbury’s gluten-free products, as well as yum-yums and potato scones.
John Duffy, chief executive of Finsbury said: “We are delighted to announce the formation of this joint venture with Genius. We have enjoyed a successful working relationship with Genius, and believe that this joint venture will cement and develop this relationship further.
“We also believe the joint venture will give added momentum to the fastest growing area of our business and we look forward to working with Genius to drive forward our market leading position for the longer term,” Duffy said.
Gervase Cottam, chief executive of Genius added: “We are looking forward to further developing the strong team that has been working with Finsbury as a key partner in the UK. Both parties are aligned and focussed on developing great tasting gluten free products that deliver against the exacting demands of our customers and consumers.”