Gluten-free bakery company Genius Foods is acquiring gluten-free pastry products manufacturer Chapel Foods for £3.5m.
Under the terms, Genius Foods will acquire operations of Chapel Foods and its production facility in Scunthorpe, Lincolnshire. Chapel Foods employs 30 people.
The bakery company has seen strong growth in frozen foods sector since the launch of a range of frozen pie products, which it had introduced in partnership with Chapel Foods in 2014.
Genius Foods expects the acquisition to bolster its distribution of frozen pies, sausage rolls, and quiches, which are manufactured at Chapel Foods' production site at Scunthorpe.
The acquisition will also enhance the production capacity, thereby aiding Genius to expand its frozen products portfolio in future.
In 2013, Genius had acquired two bakeries from UK-based bakery products manufacturer Finsbury Food for £21m. Under the terms of this deal, Finsbury Food received £17.7m in cash from Genius Foods on completion, with a further £3m payable in cash by the second anniversary of completion of the deal.
The transaction helped Finsbury Food to re-focus on its growing cake and bread businesses in order to further develop its licensed brand portfolio and pay down its outstanding debts.
As a part of the transaction, the previous contractual arrangements between Finsbury and Genius were terminated. In December 2010, Finsbury Food had entered into an agreement with Genius under which Finsbury's gluten-free bread and an additional range of gluten-free products would be sold under the Genius brand.
Image: Genius Foods acquires to improve its frozen pie portfolio. Photo: Courtesy of Apolonia/FreeDigitalPhotos.net.
