Finsbury Foods’ subsidiary, Nicholas & Harris, has acquired the entire issued share capital of Goswell Enterprises for £2.2 million in cash.
Goswell supplies branded licensed speciality breads, such as Vogel and Cranks, to a number of major supermarkets, including Sainsbury’s and Waitrose. Sales for the year to October 2008 stood at £5.4m and pro forma EBIT for the comparable period was £0.4m.
An initial payment of £0.5m has been paid, with the remaining £1.7m to be paid in instalments over the next four years.
Finsbury chief executive Martin Lightbody said the acquisition would enable the firm to expand its speciality bread offering.
“Although the current economic climate remains challenging, we are committed to making appropriate investment in our business and are delighted to be able to take advantage of opportunities such as this one,” said Lightbody.
Colin Lyons, MD of Goswell, commented: “We are pleased that Nicholas & Harris is taking over control of the Vogel’s, Cranks, Doves Farm and Caribbean Cuisine brands and we are certain that these brands will grow in strength under their stewardship.”
Nicholas & Harris produces premium, organic and speciality breads.