18 June 2009 - Finsbury Food Group plc, a leading manufacturer of cake, bread and morning goods, is pleased to announce today that its subsidiary Nicholas & Harris Limited, the producer of premium, organic and speciality breads, has acquired the entire issued share capital of Goswell Enterprises Ltd for £2.2 million in cash.
Goswell supplies a range of branded speciality breads (including Vogel and Cranks) to a number of the UK's major supermarkets, their largest customers being Sainsbury's and Waitrose. Sales for the year to October 2008 were £5.4 million and pro forma EBIT for the same period was £0.4 million.
The consideration is made up of an initial payment of £0.5 million. The remaining £1.7 million will be paid in instalments over the next four years.
Martin Lightbody, Chief Executive of Finsbury Food Group, commented:
"We are pleased to welcome Goswell into the Finsbury family, enabling us to expand our speciality bread offering. Although the current economic climate remains challenging, we are committed to making appropriate investment in our business and are delighted to be able to take advantage of opportunities such as this one."
Colin Lyons, Managing Director of Goswell Bakeries Limited, commented:
"We are pleased that Nicholas & Harris is taking over control of the Vogel's, Cranks, Doves Farm and Caribbean Cuisine brands and we are certain that these brands will grow in strength under their stewardship."