2 October 2007 - Finsbury Food Group plc, a leading manufacturer of premium and celebration cakes, low fat cake slices and speciality, organic and gluten free breads, is pleased to announce today the acquisition of Anthony Alan Foods Ltd, one of the UK's leading suppliers of low fat cakes.
Anthony Alan Foods is a sales and marketing business which has, under licence from Weight Watchers, the rights to distribute ambient cakes using the Weight Watchers brand in the UK and Ireland. The company was founded in 2001 to develop a low fat cake brand in partnership with Weight Watchers, and now directly supplies into the majority of the UK and Ireland's food retailers. Sales in the year ended March 2007 were £11.60m, generating a pro-forma profit before interest and tax of £0.70m.
The acquisition of the entire issued share capital will be for a total maximum consideration of £3.75m. £0.35m is payable on completion and £0.50m contingent on achieving certain performance targets for the year to March 2008. A further payment of up to £2.90m will become due in November 2009 provided that the Weight Watchers licence is renewed for a further three years. The total consideration will be funded by a combination of a £2.10m term loan from the Group's bankers, HSBC Bank plc, and internal funds.
According to TNS (April 2007), the Weight Watchers brand is the largest in the low fat cake sector with a market share of 58%, and is up 15% year-on-year.
The acquisition complements the Group's focus on the premium, celebration and health sectors - areas where it believes there is significant growth potential.
Commenting on the acquisitions, Dave Brooks, Finsbury Food Group plc's Chief Executive, said:
'Finsbury Food Group currently produces nearly 60% of the Anthony Alan Foods product range. Through this acquisition, we will be able to drive the growth of the business further and develop the product range, focusing at all times on being 'The Best at What We Do'. This addition to our Group gives us the market leading position in low fat cakes to complement our leading position in the premium and celebration cakes sectors.'
Commenting on their new partnership with Finsbury Food Group, Melanie Stubbing, Weights Watchers (UK) Ltd Senior Vice President, said:
'We have enjoyed a fantastic relationship with Anthony Alan Foods, and the team has done a great job establishing Weight Watchers cakes as the best selling low fat cake range in the UK. We are now delighted to be working with one of the UK's largest cake manufacturers to develop that category even further. Weight Watchers is the 14th largest food brand in the UK, and with Finsbury's support, we can continue with our aim to break into the top 10'.