Sat, 02 Mar 2013 | BUSINESS SALE
The Free From gluten-free food specialist has been sold by its parent company Finsbury Foods to Genius Foods.
Reports confirm that the sale went through for £21 million and included the business' subsidiaries, Livwell and United Central Bakeries. Initially, the group will pay £17.7 million up front, with the remaining £3 million becoming due next year. HSBC is thought to have provided around £7.5 million in funding to facilitate the purchase.
Free From produces a range of gluten-free products, as well as dairy and wheat-free items, such as chocolate brownies and breads. Last year, Free From accounted for around 14 per cent of Finsbury's revenues with sales of £28.5 million.
John Duffy, chief executive of Finsbury, told Food Manufacturer: “We believe that our decision to focus on our core cake and bread business is the group putting its best foot forward.
“The sale will allow the group to further invest, pay down debt, and take advantage of additional opportunities available to us, with the ultimate goal of driving shareholder value.”
The acquisition will make Genius one of the largest food companies in Scotland and will give it a turnover of almost £50 million this year if all goes according to plan. Roz Cuschieri, chief executive of Genius, said that her company planned to use the acquisition to “accelerate the development of the brand's gluten-free range of bakery products”.
She added: “We intend to invest in the bakeries and the team that work there. Our intention is to invest to cope with the increasing demand for our products.”
Gluten-free products are becoming increasingly popular with shoppers who are starting to pay more attention to their health. They represent a burgeoning niche within the retail sector that has so far shown resilience in the economic downturn.
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