By Anthony O. Goriainoff
Cake Box said it has agreed to buy Ambala Foods for 22 million pounds ($28.5 million) and that it would raise funds to partly finance the transaction.
The London-listed cake retailer said it will raise 7.0 million pounds via an accelerated bookbuild and the placing of 3.9 million ordinary shares. These will be placed at 180 pence a share, representing a discount of around 5.3% to Wednesday's closing. Cake Box will also raise up to 200,000 pounds via a retail offer, it said.
The company said the deal for the Asian confectionary manufacturer will also be funded via a new 15.2 million pounds term loan facility as well as existing cash resources.
Cake Box said the deal will consist of 16 million pounds for Ambala and 6 million pounds for its manufacturing facility in Welwyn Garden City, England.
The board said the acquisition provided a number of compelling synergies as well as strategic growth opportunities.
The cake maker also said it had enjoyed record sales during the festive period and was confident of meeting market expectations for fiscal 2025.
"By adding Cake Box's expertise and resources to Ambala, we aim to create a unique blend of traditional and contemporary delicacies that appeal to a diverse audience, ultimately driving growth and profitability," Chief Executive Sukh Chamdal said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
March 12, 2025 03:26 ET (07:26 GMT)
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