Finsbury Food Group has acquired a majority stake in Lola’s Cupcakes, marking its entry into the direct-to-consumer market.
The deal will see the bakery manufacturer acquiring a 70% stake in the cupcake chain. It would “strengthen its position in the UK celebration cake and cupcake sector and create new opportunities for innovation and collaboration”, according to Finsbury Food.
Lola’s Cupcakes first launched in 2006 with concessions in Selfridges, Topshop and a flagship store in Mayfair. It now has a network of 45 kiosks and collection lockers in high-footfall locations including London Liverpool Street, Waterloo and King’s Cross railway stations.
It employs more than 400 people and has one international franchisee in Japan.
Finsbury Food is owned by investment firm DBay Advisors and supplies a range of bread, cake and morning goods products to retailers, foodservice and export customers across the UK and Europe.
The acquisition forms part of the group’s long-term growth strategy, which includes targeted investments in innovative, high-growth segments of the bakery market.
“Today marks an exciting milestone in the trajectory of Finsbury Food Group as we welcome Lola’s into the family,” said Finsbury Food Group CEO John Duffy. ”It represents another step forward in Finsbury’s acquisition journey as a buy-and-build business, allowing us to enter the direct-to-consumer market for the first time.
“Lola’s is an entrepreneurial and much-loved UK brand with a strong digital presence, and together, we see significant potential for growth and innovation across both Finsbury and Lola’s.”
Lola’s Cupcakes MD Asher Budwig added: “I’m thrilled to be working with the Finsbury team on the next chapter of Lola’s story. I’ve had the chance to get to know how the group operates, and I’ve witnessed its strength, breadth and capabilities first-hand.
”With Finsbury’s expertise in manufacturing, and the broader support of the group, I’m confident we can take Lola’s to exciting new heights by building on what we’ve already achieved and exploring new opportunities together.”
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