3rd Sep 2018 10:32
LONDON (Alliance News) - Finsbury Food Group PLC on Monday said it bought gluten-free bakery Ultrapharm Ltd for up to GBP20 million.
Finsbury said it will pay GBP17 million in cash at completion and up to GBP3 million in annual instalments, depending on agreed performance criteria. Finsbury Food said it will fund the purchase through existing cash and debt facilities.
Ultrapharm employs more than 240 staff across manufacturing sites in the UK and Poland. For the year to the end of 2017, it generated earnings before interest, taxes, depreciation, and amortization of GBP1.6 million and pretax profit of GBP800,000. Revenue totalled GBP19.5 million.
"We are delighted to have secured such a valuable strategic acquisition, one that presents the group with a significant opportunity to access an exciting and high growth marketplace," said Finsbury Food Chief Executive John Duffy.
"Alongside the growth opportunities this acquisition brings, in line with the group's strategy, it further diversifies us by geography and category; giving us a further foothold in Europe and allowing us to diversify into the Free From market," added Duffy.
Shares in Finsbury Food were trading 1.2% higher on Monday at 126.00 pence each.
Related Shares:
FIF.L