The private equity-owned Fletchers Group of Bakeries has been sold to Finsbury Food Group for £56m – a deal which will create one of the largest specialist bakery companies in the UK.
The deal comes just weeks after Finsbury, the licensed celebration cake supplier, said it would be looking to expand via acquisition and it described the deal as “a strong platform for the group to address the foodservice market”.
Vision Capital acquired Fletchers in 2007 and since then has invested heavily in a bid to improve the company, in particular Kara, the company’s dedicated foodservice brand. The combined group will have estimated annual sales in the region of £300m.
Stephen Holding, managing director of Fletchers, said: “Fletchers has undergone a significant transformation since it was acquired by Vision Capital in 2007 and I am very proud of the hard work and dedication of our colleagues, which has made the company what it is today. This is an exciting new step for the company and I’m looking forward to the opportunities being part of Finsbury Food will bring.”
John Duffy, chief executive of Finsbury Food Group, added: “The acquisition of Fletchers is a transformational development for Finsbury Food Group, and will add scale to the effect that, together, we will be one of the largest speciality bakery groups in the UK.”
Duffy added: “We believe the enlarged group will be in a strong position for new licensing arrangements, joint ventures and stronger customer and brand relationships.”
Fletchers has three sites, including its HQ in Sheffield; the Grain D’Or business in London and Kara in Manchester. Finsbury is run out of Memory Lane in Cardiff, Lightbody near Glasgow and N&H in Salisbury. All of these are expected to continue.
KPMG advised Vision Capital in the sale process.