SCOTTISH TEACKAE MANUFACTURER PURCHASED BY BAKERY GROUP

English bakery manufacturer Finsbury Food Group has acquired 100% of the share capital of Lees Foods, a producer of meringues, teacakes and snowballs. Established in 1931, Lees employs more than 200 staff at its site in Coatbridge and was purchased for £5.7 million.

Lees main products are the macaroon bar and snowball and currently runs a 80,000 sq ft factory, with the production portfolio expanding to a range of confectionery bars, teacakes and meringues.

Finsbury’s board believes that it will be able to leverage the scale and breadth of its commercial team and licensed brand portfolio to drive incremental growth for Lees – in addition to scale cost synergies over time.

Lees’ adjusted underlying earnings before tax were £900,000 from adjusted underlying net sales of £21.6m at its last financial update, with the deal expected to be earnings accretive immediately in the full year 2023.

The consideration for the acquisition payable by Finsbury is a cash amount of £5.7m, on the basis that Lees is acquired cash and debt-free and with an agreed level of working capital.

John Duffy, chief executive at Finsbury, commented: “We are delighted to announce the strategic acquisition of Lees Foods, as we consolidate our position in the sweet treats sector and grow our manufacturing presence in Scotland.

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.”