- Speciality bakery Finsbury Food Group said Monday it had acquired bakery manufacturer Ultrapharm for an initial £17m.

As a specialist 'Free From' bakery, Ultrapharm has an extensive product range including bread, buns & rolls and other morning goods. The company operates in the UK and Poland.

Under the terms of the agreement, Finsbury Food Group is expected to pay £17m in cash at completion, up to £3m in annual instalments up to 30 June 2021.

The annual instalments payments would be subject to the continued employment of key management and a final incentive payment subject to performance criteria over the period to 30 June 2021 estimated at about £1.0m and capped at £5m for regulatory purposes.

The acquisition would be funded from the Group's existing cash and debt facilities.

The acquisition of Ultrapharm supports the group's ongoing strategy to further diversify its product capability into high growth areas.

For the year ended 31 December 2017, Ultrapharm generated earnings (EBITDA) of £1.6m and profit before tax of £0.8m which have continued to grow since year end. Revenue generated was £19.5m, up 35% from £14.5m for the comparative period in 2016.

'Alongside the growth opportunities this acquisition brings, in line with the Group's strategy, it further diversifies us by geography and category; giving us a further foothold in Europe and allowing us to diversify into the Free From market,' said John Duffy, Chief Executive of Finsbury Food Group.

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