Fletchers Group of Bakeries, one of the UK’s best-known and longest-established bakery firms, has been sold to Finsbury Food Group for £56m – a deal which will create one of the largest specialist bakery companies in the UK, with a turnover of £300m-plus. Fletchers has a dedicated foodservice wholesale Features > Business, Kara, which is thought to be part of the deal.
The deal comes just weeks after Finsbury, a licensed celebration cake supplier, said it would be looking to expand via acquisition and it described the deal as “a strong platform for the group to address the foodservice market”.
Private equity firm Vision Capital acquired Fletchers – founded in 1895 in Sheffield – from Northern Foods in 2007 and since then has invested heavily in a bid to improve the company, in particular Kara, the company’s dedicated foodservice brand. The combined group will have estimated annual sales in the region of £300m.
Stephen Holding, managing director of Fletchers, said: “Fletchers has undergone a significant transformation since it was acquired by Vision Capital in 2007 and I am very proud of the hard work and dedication of our colleagues, which has made the company what it is today. This is an exciting new step for the company and I’m looking forward to the opportunities being part of Finsbury Food will bring.”
John Duffy, chief executive of Finsbury Food Group, added: “The acquisition of Fletchers is a transformational development for Finsbury Food Group, and will add scale to the effect that, together, we will be one of the largest speciality bakery groups in the UK. We believe the enlarged group will be in a strong position for new licensing arrangements, joint ventures and stronger customer and brand relationships.”
Fletchers has three sites, including its HQ in Sheffield; the Grain D’Or business in London and Kara in Manchester. Finsbury is run out of Cardiff, and Salisbury. All of these sites are expected to continue.