Finsbury Food Group is continuing to diversify through acquisitions after this week announcing plans to rescue Johnstone’s Just Desserts from administration.
Johnstone’s - which turned over £9.1m in the year to 30 November 2013 - provides baked goods to foodservice clients including national coffee shops, and the deal takes Finsbury into the growing café market.
“This is a great bolt-on,” said Finsbury’s joint MD Lawrence Trist. “It is a fairly small acquisition but that is not to say it’s not a great one - it gets us into the coffee shops.”
He added Johnstone’s 150 employees, including management, would be retained. The East Kilbride-based business entered administration on 24 March following the loss of contracts with two key independent customers. Completion of the acquisition is conditional on finalisation of property lease details.
“This continues our strategy of broadening our customer base and diversifying into new channels,” said Trist, adding Finsbury would remain acquisitive.
The Johnstone’s deal follows Finsbury’s acquisition of morning goods and specialist bread supplier Fletchers Group for £56m.