An Edinburgh-based gluten-free food company has completed the acquisition of a partner bakery in a deal worth more than £20 million.
Genius Foods has completed the purchase of United Central Bakeries (UCB), to move forward with greater control over the developments of its products.
The chief executive of Genius, Roz Cuschieri said of the deal:
“Our customers are constantly looking to us to bring further innovation to the market and owning our own production capability will enable us to better meet that demand. UCB already produces Genius bakery products, and this acquisition is the natural next step in the evolution of the successful joint venture
“The acquisition of own label capability will allow us to offer a full category perspective and we look forward to working closely with our retail customers to develop this growing category with them.”
The £21m acquisition of UCB, secured through Scottish commercial finance, will take the estimated turnover of the combined company close to £50 million. Cuschieri also stated there would be investment in the operations of existing UCB bakeries, with demand for both gluten-free products and Genius products on the increase.
A switch to healthier living is a key factor in the growth in popularity of ‘free-from’ foods. It’s profile has also been significantly raised by Novak Djokovic, who famously has a strict non-gluten diet.
The world number one tennis star was also responsible for the complete purchase of all 2013 stocks of donkey cheese in his home country of Serbia last year. The Australian Open champion is opening a chain of gluten-free restaurants in the country.