London / UK. (ffg) Finsbury Food Group PLC, a leading manufacturer of cake, bread and gluten free bakery goods, is pleased to announce that it has through its United Central Bakeries (UCB) and Livwell subsidiaries entered into a new contractual joint venture agreement with Genius Foods Limited, its existing partner and owner of the Genius brand. Finsbury and Genius are expanding their existing relationship through the introduction of additional gluten free products to be sold under the Genius brand and will therefore operate as contractual joint venture partners within the UK fresh bakery goods sector.
The JV Agreement also contains details of an option, granted by Finsbury to Genius, to buy the business and assets of UCB and Livwell for a consideration of 21 million GBP, at any point within twelve months from this date. UCB and Livwell are the subsidiaries of Finsbury which produce Finsbury´s gluten-free products, as well as yum-yums and potato scones. In the year ended 30 June 2010, UCB and Livwell recorded revenues of 23,1 million GBP and profit before tax (after Group costs) of one million GBP, which in the event of the option being exercised will no longer accrue to the Finsbury Group. In the event of the option being exercised the proceeds of the sale will be used to repay debt and for general corporate purposes. Genius has also undertaken to transfer the potato scone and yum-yum business back to the Finsbury Group.
Finsbury´s CEO John Duffy: «We are delighted to announce the formation of this joint venture with Genius, the leading and most innovative brand in the gluten free market. We have enjoyed a successful working relationship with Genius, and believe that this joint venture will cement and develop this relationship further. We also believe the joint venture will give added momentum to the fastest growing area of our business and we look forward to working with Genius to drive forward our market leading position for the longer term».
Genius-CEO Gervase Cottam: «We are looking forward to further developing the strong team that has been working with Finsbury as a key partner in the UK. Both parties are aligned and focussed on developing great tasting gluten free products that deliver against the exacting demands of our customers and consumers».
