Finsbury Food buys Lees for £5.7m

30th Jan 2023 09:11

(Sharecast News) - Speciality baker Finsbury Food Group said on Monday that it has bought Lees, a manufacturer of meringues, teacakes and snowballs, for £5.7m in cash.

Established in 1931, Lees employs more than 200 staff at its site in Coatbridge, Scotland. Finsbury said it has a UK market-leading position in the manufacture of meringues and has significant capability in the sweet treats category, adjacent to its own existing markets.

"The acquisition is in line with Finsbury's strategy to diversify its product capability into areas with high growth potential," it said.

Lees' adjusted underlying EBITDA is £0.9m, from adjusted underlying net sales of £21.6m, and Finsbury said the deal will be earnings accretive immediately in FY23.

Chief executive 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."