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Finsbury Foods buys into the gluten-free market with HSBC support

07 September 2018

The Cardiff-headquartered speciality bakery manufacturer has secured an additional £15 million finance package from HSBC UK and its other banking partners to support the acquisition of gluten free bakery business, Ultrapharm Ltd. 

Finsbury Foods, which produces bread, cake and snack products, has agreed an uplift on its current £45 million revolving credit facility (RCF) to make the acquisition. This takes its total borrowing to £60 million.
The existing £45 million RCF was agreed by banking partners HSBC UK, RBS and Rabobank in February 2018 to provide the business with a range of working capital facilities, with a further £45 million uncommitted finance facility available to support its acquisition strategy.
The acquisition of Pontypool-based Ultrapharm has enabled Finsbury Foods to take a space in the gluten free market, which will help broaden its current offer, allow it to supply into a larger number of supermarkets across the UK and provide the Group with a larger footprint in Europe.
Steve Boyd, group financial director at Finsbury Foods, said: “The acquisition of Ultrapharm is important for us as it accelerates our strategy to diversify within our bakery division by introducing new products, customers and channels. Ultrapharm represents a large step into the fast growing gluten free market, as well as a manufacturing presence in Poland.  This has been made possible by HSBC UK and our other banking partners. The existing revolving credit facility has been pivotal to the smooth operation and organic growth of our business over the last six months and it gives us confidence to know that there is additional financing available to help us grow through acquisition when the opportunities arise.”

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