Food firm bought
Lees acquired by Finsbury Group in £5.7m deal
Bakery company Finsbury Food Group has acquired Coatbridge-based Lees Foods in a £5.7 million cash deal.
Lees, a producer of meringues, teacakes and snowballs, was established in 1931 and employs more than 200 staff in Lanarkshire.
Finsbury’s board believes that it can leverage the scale and breadth of its commercial team and licensed brand portfolio to drive incremental growth for Lees – in addition to scale cost synergies over time.
Lees’ adjusted underlying earnings before tax were £900,000 from adjusted underlying net sales of £21.6m at its last financial update, with the deal expected to be earnings accretive immediately in the full year 2023.
The acquisition is on the basis that Lees is acquired cash and debt-free and with an agreed level of working capital.
John Duffy, chief executive at Finsbury, the deal consolidates its position in the sweet treats sector and allows it to grow its manufacturing presence in Scotland.
“Lees currently has a well-established position in the UK meringue category and strong relationships across a high quality and diverse customer base,” he said.
“This provides Finsbury with the opportunity to build upon both businesses’ existing retail relationships and unlock further commercial opportunities, including out of home.”