FINSBURY Food Group is close to completing a deal to buy Johnstone's Just Desserts from administrators and save around 150 jobs in Scotland.
AIM-listed cake and baked goods supplier Finsbury already employs around 1,100 Scottish workers at facilities in Hamilton and Twechar, East Dunbartonshire.
The proposed transaction will see it add the Johnstone's headquarters and factory at East Kilbride, which is on the former Fujitsu site in the town, as well as the customer list of the business.
Johnstone's is said to have had a turnover of around £9m in 2014 and specialises in selling cakes to UK-wide coffee shop chains.
Its products include the likes of caramel shortcake, lemon cheesecake and rocky road and chocolate tiffin.
Johnstone's went into administration in March with FRP Advisory working to find a buyer since then.
Finsbury said it was in talks with FRP to finalise property lease details but it was hopeful the deal will go through soon.
It intends to put manufacturing and finance staff into Johnstone's to help make the integration process smoother until the formal completion is signed.
Finsbury also said it intends to work with the management at Johnstone's and retain all 150 staff.
The value of the agreement has not been revealed.
John Duffy, chief executive of Finsbury Food Group, said: "Johnstone's Just Desserts will be a bolt on acquisition and is in line with our strategy to diversify into new channels.
"This, illustrates the group's continued reach into the foodservice 'out of home eating' market and the broadening of our product offering and customer base.
"The strength of Johnstones' customer relationships are testament to the quality of its products and we look forward to welcoming the company into the Finsbury Group and providing the resources and investment to develop its full potential over the coming years."
The most recent accounts available at Companies House for Johnstone's, which cover the 12 months to November 30, 2013, show turnover of £9.1 million and pre-tax profit of £26,316.
The balance sheet recorded net debt of £1.89m in the November of that year.
Its most recent annual return, dated from September last year, shows Kevin Moore as the sole director and main shareholder.
Finsbury sells birthday and celebration cakes to supermarkets mainly through Lightbody Cakes in Hamilton, and Cardiff based Memory Lane Cakes.
Last year it bought Fletchers for £56m to expand its presence in buns, muffins, scones and baguettes with a view to increasing its presence in restaurants, coffee shops, bars and fast food outlets.
Fletchers, which employed around 600 people, had bakeries in Sheffield, Manchester and London.
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