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Finsbury Food Group (FIF)

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Finsbury Food buys 'free from' baker Ultrapharm for up to 25m

03 Sep 18

LONDON (ShareCast) - (Sharecast News) - Finsbury Food Group has acquired 'free from' baker Ultrapharm for up to 25m in a deal that supports its ongoing strategy to diversify its product capability into high-growth areas.
The total consideration is split, with 17m payable in cash at completion, up to 3m payable in annual instalments to the period to 30 June 2021 subject to the continued employment of key management and a final incentive payment subject to performance criteria over the period to 30 June 2021 of around 1m and capped at 5m. It will be funded from the group's existing cash and debt facilities.

Established in 1993, Ultrapharm employs more than 240 staff across the UK and Poland and has an extensive product range including bread, buns and rolls and other morning goods.

The UK 'free from' bread and morning goods market has grown 92% in the last four years, with the outlook set for further growth over the next five years in line with the continued growth forecast for the wider UK free from grocery market, according to Kantar.

For the year to the end of December 2017, Ultrapharm generated earnings before interest, taxes, depreciation and amortisation of 1.6m and pre-tax profit of 0.8m.

Chief executive officer John Duffy said: "We are delighted to have secured such a valuable strategic acquisition, one that presents the group with a significant opportunity to access an exciting and high growth marketplace.

"Ultrapharm has a robust market position both in the UK and Europe, extensive technical ability 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, as well as unlocking further commercial opportunities.

"Alongside the growth opportunities this acquisition brings, in line with the group's strategy, it further diversifies us by geography and category; giving us a further foothold in Europe and allowing us to diversify into the free from market."

At 1045 BST, the shares were up 1.2% to 126p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 78.00p
Change Today 1.50p
52 Week High 127.50p
52 Week Low 60.00p
Volume 188,954
Shares Issued 130.38m
Market Cap 101.70m


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