Leading speciality bakery manufacturer and Cardiff headquartered Finsbury Food Group has acquired a majority stake in premium cupcake and celebration cake business Lola’s Cupcakes.
The deal for a 70% equity stake, the value of which isn’t being disclosed, marks Finsbury’s entry into the direct-to-consumer market.
Lola’s combines a strong e-commerce platform, which accounts for around half of sales, with a network of 45 kiosks and collection lockers in high-footfall locations including major London transport hubs.
The business generates annual revenues of £25m and employs around 400 people, operating from its Park Royal facility in London. It will continue to be led by managing director Asher Budwig, while benefiting from Finsbury’s manufacturing expertise, scale and commercial reach.
Finsbury Food Group supplies a range of bread, cake and morning goods products to multiple retailers, foodservice and export customers across the Ƶ and Europe.
The acquisition is part of the business’s long-term growth strategy, which includes targeted investments in innovative, high-growth segments of the bakery market.
By adding direct to consumer capability to its portfolio, Finsbury said the deal broadens its routes to market, strengthens its position in the Ƶ celebration cake and cupcake sector and creates new opportunities for innovation and collaboration.
Finsbury has Ƶ-wide operations, including Memory Lane Cakes at its Cardiff headquarters site which employs 850 and produces 41 million cakes a year for supermarkets and licensed brands such as Thorntons, Disney and Mars annually.
John Duffy, chief executive of Finsbury Food Group, said: “This marks an exciting milestone in the trajectory of Finsbury Food Group as we welcome Lola’s into the family.
"It represents another step forward in Finsbury’s acquisition journey as a buy-and-build business, allowing us to enter the direct-to-consumer market for the first time. Lola’s is an entrepreneurial and much-loved Ƶ brand with a strong digital presence, and together, we see significant potential for growth and innovation across both Finsbury and Lola’s.”
Asher Budwig, managing director of Lola’s, said: “I’m thrilled to be working with the Finsbury team on the next chapter of Lola’s story. I’ve had the chance to get to know how the Group operates, and I’ve witnessed its strength, breadth and capabilities first-hand.
"With Finsbury’s expertise in manufacturing, and the broader support of the group, I’m confident we can take Lola’s to exciting new heights by building on what we’ve already achieved and exploring new opportunities together.”
Finsbury de-listed from the London Stock Exchange in 2023 when it was acquired by Isle of Man-based asset manager DBAY Advisors.
