Fletchers Group of Bakeries has been acquired by Finsbury Food in a £56m reverse takeover.
The Sheffield-based firm, which produces morning goods and specialist bread products for UK grocery retailers and foodservice customers, was sold by Vision Capital, which has owned Fletchers since 2007.
The purchase price will be funded through a £35m placing and and new debt facilities. Finsbury, which manufactures cake and bread bakery goods, said the enlarged group would be one of the largest speciality bakery groups in the UK, with sales approaching £300m.
It said that due to the size of the acquisition relative to the company, it will be treated as a reverse takeover.
John Duffy, chief executive of Finsbury Food, said: “The acquisition of Fletchers is a transformational development for the group, and will add scale to the effect that we will be one of the largest speciality bakery groups in the UK.”
He added: “By servicing both the cake and bakery market, through both retail and foodservice, the Enlarged Group will have a diversified product and customer offering, and greater potential for driving growth for our shareholders. We look forward to welcoming the Fletchers team and customers into Finsbury Food and continuing to provide our newly broadened customer base with high quality products and service.”
Stephen Holding, managing director of Fletchers, said: “Fletchers has undergone a significant transformation since it was acquired by Vision Capital in 2007, and I am very proud of the hard work and dedication of our colleagues which has made the company what it is today. This is an exciting next step for the company and I’m looking forward to the opportunities that being part of the enlarged Finsbury Foods will bring.”
KPMG advised Vision Capital on the sale of the business.