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Vision Capital to sell Fletchers Group of Bakeries for 56 mln pounds

Vision Capital has agreed to sell Fletchers Group of Bakeries to Finsbury Food Group for 56 million pounds. Finsbury shareholders, as well as regulators, still must approve the transaction. Vision Capital acquired Fletchers from Northern Foods in 2007.

Press Release

Vision Capital, the private equity investment firm, has today announced that it has entered into an agreement to sell Fletchers Group of Bakeries (“Fletchers”) to Finsbury Food Group PLC (“Finsbury”) for a total consideration of £56 million subject to regulatory and Finsbury shareholder approval.

Vision Capital acquired Fletchers from Northern Foods plc in 2007, and since that time has executed a significant business improvement plan resulting in a step change in profitability at the Company.

Under Vision’s ownership Fletchers has developed high quality products across a broad category of fresh and frozen baked goods, particularly in morning goods. In addition, Fletchers has built a large and growing foodservice business, which has the opportunity for further innovation and growth. The Fletchers business will complement Finsbury’s existing cake and bread manufacturing business and provide additional sales opportunities for the combined Company, harnessing Fletchers’ long established customer relationships.

Andrew Rich, Partner at Vision Capital, said: “Fletchers is a strong, profitable and growing Company with a leading position in the fresh and frozen baked goods industry. Finsbury is the ideal partner to take Fletchers into the next phase of its development and the combined Group is well positioned to prosper.”

Stephen Holding, Managing Director of Fletchers, said: “Fletchers has undergone a significant transformation since it was acquired by Vision Capital in 2007, and I am very proud of the hard work and dedication of our colleagues which has made the Company what it is today. This is an exciting next step for the Company and I’m looking forward to the opportunities that being part of Finsbury Foods will bring.”

John Duffy, CEO of Finsbury Food Group, said: “The acquisition of Fletchers is a transformational development for Finsbury Food Group, and will add scale to the effect that together we will be one of the largest speciality bakery groups in the UK.

“Fletchers is a highly complementary business, which broadens the Finsbury UK speciality bakery product, customer and channel growth potential and will provide a strong platform for the Group to address the Foodservice markets. We believe the Enlarged Group will be in a strong position for new licensing arrangements, joint ventures and stronger customer and brand relationships.

“By servicing both the cake and bakery market, through both retail and foodservice, the Enlarged Group will have a diversified product and customer offering, and greater potential for driving growth for our shareholders. We look forward to welcoming the Fletchers team and customers into Finsbury Food and continuing to provide our newly broadened customer base with high quality products and service.”

KPMG acted as financial advisor to Vision Capital for this transaction.