4 December 2007 - Lees Foods, the AIM listed company, is pleased to announce that, on 3rd December 2007, it acquired Patisserie UK, a speciality bakery and dessert manufacturer, for an aggregate consideration of £2.45 million.
Patisserie UK is the trading arm of Rock Cake Ltd and is based in Livingston, Scotland. It is an innovative manufacturer of speciality bakery and desserts, and employs a total of 50 people, including a professional team of skilled bakers and pastry chefs. Patisserie UK supplies the local out-of-home market including coffee chains, hotels and restaurants, travel and contract catering outlets.
Patisserie UK was created as a result of a management buy-out in February 2006 from Enterprise Foods. Patisserie UK generated profits before tax of £420,000 on turnover of £3.485 million for the year ended 30 June 2007. Net assets of the group at that date amounted to £471,000.
The consideration for the acquisition of the entire issued share capital of Rock Cake Ltd has been satisfied by an initial cash payment of £1.85 million and the issue of 65,000 new Ordinary Shares in Lees Foods. Deferred cash consideration of £450,000 is payable in two tranches of up to £250,000 and up to £200,000, dependent upon the level of profits before taxation for the twelve month periods ending on 30 June 2008 and 30 June 2009 respectively.
Application has been made for the 65,000 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 7 December 2007.
Patisserie UK will retain its identity within the Lees Foods group. Johnnie Roden, Managing Director of Patisserie UK, will continue in this role. It is intended that Mr Roden will join the Board of Lees Foods after six months at which time he will be granted options over 30,000 new Ordinary Shares in Lees Foods under a non-approved option scheme.
Johnnie Roden, Managing Director of Patisserie UK, commented:
'It is an exciting time for everyone at Patisserie UK. We are delighted to be part of Lees Foods, and look forward to realising our expansion plans and working with their management team to explore new development opportunities for our premium cakes and desserts.'
Raymond Miquel, Executive Chairman of Lees Foods, commented:
'This is our first acquisition since joining AIM and it represents an exciting investment for Lees Foods. Patisserie UK produces a range of high quality bakery goods and premium cakes which will be an excellent addition to our portfolio, especially in the food service and catering sectors.''There are outline plans to expand the Livingston site and it will be our intention to develop the factory to increase production capacity. Patisserie UK's products will be introduced into Lees Foods' existing distribution channels as they complement our existing product range and provide significant new sales opportunities for the Lees Foods group.'