Finsbury Food acquires bakery products maker Ultrapharm

UK-based cake and bakery goods manufacturer Finsbury Food has acquired ‘free-from’ bakery products producer Ultrapharm for £17m ($21m).

Finsbury Food intends to fund this acquisition using its existing cash and debt facilities.

Set up in 1993, Ultrapharm produces a wide range of free-from bakery products, including bread, buns, rolls and other morning goods at its manufacturing facilities located in Poland and the UK.

Finsbury Food Group chief executive 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 business’ 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.”

The acquisition of Ultrapharm is said to be in line with Finsbury Food’s strategy to further diversify its product capability and tap the growing demand for free-from foods.

Ultrapharm chief executive Marc Lewis said: “We are delighted to be joining the Finsbury Group and looking forward to growing Ultrapharm’s exciting prospects with their support.”

For this acquisition, Finsbury was advised by Stamford Partners, while Gambit Corporate Finance advised the shareholders of Ultrapharm on the deal.