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Finsbury Food Group

  • BY: Andrew Hore |
  • POSTED: 18/06/2009 |

Finsbury Food Group has expanded its speciality breads business through the acquisition of Goswell Enterprises.

The cakes and speciality breads maker is paying £2.2m for Goswell, which provides branded speciality breads to UK supermarkets, including Sainsbury’s and Waitrose. Brands include Vogel, Doves Farm, Caribbean Cuisine and Cranks.

Goswell generated an operating profit of £400,000 on revenues of £5.4m in the year to October 2008.

Finsbury is paying an initial £500,000 and the other £1.7m is being paid over four years. Hopefully the cash generated by the business will help to pay the rest of the purchase price. Net debt was £42.9m at the end of 2008 and there was £6m of deferred consideration payable.

There is no new news on the potential bid for Finsbury. The shares fell 1.75p to 21p each, which values the cake maker at £10.8m. The share price is lower than the day before the bid approach was announced.

The bid approach was described by Finsbury as “exploratory” and it said that “there is considerable doubt” that an offer will be made.

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