Bakery giant Finsbury Food Group has today announced the completion of its acquisition of Johnstone’s Just Desserts (Johnstone’s), from administrator FRP Advisory.
The firm, which bought Fletchers Group of Bakeries last year, said that the purchase of Johnstone’s would escalate the company’s entry into the foodservice cake market. The acquisition would also save the jobs of 150 employees.
Johnstone’s is a supplier to leading national coffee shop chains and produces cakes such as caramel shortcake and brownies.
Johnstone’s appointed administrators from FRP Advisory in March, following the loss of contracts with two of its key independent customers.
Commenting on the sale joint administrator Tom MacLennan, partner at FRP Advisory said: “We are delighted to have secured the sale of the Johnstone’s Just Desserts business to Finsbury Food Group, which is widely regarded as one of the UK’s most progressive and entrepreneurial food manufacturing businesses. This is a great result both in safeguarding the business, and importantly for securing all 150 jobs in food manufacturing..”
Last month John Duffy, chief executive of Finsbury, said: “Johnstone’s Just Desserts will be a bolt-on acquisition and is in line with our strategy to diversify into new channels. This illustrates the group’s continued reach into the foodservice ‘out of home eating’ market and the broadening of our product offering and customer base.”
The Johnstone’s site, based in East Kilbride, Glasgow, generated a turnover of around £9m ($13.7m) in 2014.