Finsbury Food Group has entered into a new contractual joint venture deal with Genius Foods, an existing partner and owner of the Genius gluten-free brand, through its United Central Bakeries (UCB) and Livwell subsidiaries.

Finsbury and Genius plan to introduce additional gluten-free products under the Genius brand. However, there is also an option, granted by Finsbury, for Genius to buy the business and assets of UCB and Livwell, which produce Finsbury’s gluten-free products, as well as yum-yums and potato scones, for a consideration of £21m, at any point within 12 months from 23 December 2010.

If Genius chooses to exercise this option, it will transfer the potato scone and yum-yum business back to Finsbury.

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