30th Jan 2023 12:38
(Alliance News) - Finsbury Food Group PLC on Monday announced it is buying Scotland-based meringue maker Lees Foods Ltd.
Meringue is a dessert made from egg whites and sugar.
The GBP5.7 million acquisition will be paid via cash and will be "immediately" earnings enhancing for Finsbury in financial year 2023, which starts in July. Lees Foods' 2022 adjusted underlying earnings before interest, tax, depreciation and amortisation was GBP900,000, with adjusted underlying net sales of GBP21.6 million, Finsbury said.
Finsbury Chief Executive Officer John Duffy said: "Lees currently has a well-established position in the UK meringue category and strong relationships across a high quality and diverse customer base. This provides Finsbury with the opportunity to build upon both businesses' existing retail relationships and unlock further commercial opportunities, including out of home."
Finsbury Food shares were 1.2% higher at 95.60 pence each in London on Monday afternoon.
By Tom Budszus, Alliance News reporter
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