Finsbury Food Group has acquired Welsh free-from bakery manufacturer Ultrapharm in a £17 million deal, expanding the company’s presence in the UK’s growing free-from segment.
Ultrapharm specialises in the production of free-from bakery products such as bread, muffins and crumpets, and supplies its products to a wide range of clients, including Finsbury’s Lightbody unit.
The company employs 240 staff and operates manufacturing sites in both the UK and Poland, and generated revenues of £19.5 million in 2017.
A study from Kantar Worldpanel claimed that the UK’s free-from bread & morning goods market has grown 92% in the last four years, as more consumers are adopting free-from diets as a lifestyle choice rather than a dietary requirement.
Finsbury claims that this acquisition will provide it with a significant growth opportunity, as the market is predicted to experience further growth over the next five years.
John Duffy, Finsbury Food Group CEO 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.
“We look forward to welcoming Ultrapharm to the team and investing in the wider group to capitalise on such a significant opportunity for growth.”
Marc Lewis, chief executive of Ultrapharm added: “We are delighted to be joining the Finsbury Group and looking forward to growing Ultrapharm’s exciting prospects with their support.”
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