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Finsbury Food Group has agreed to acquire a 70% stake in Lola\u2019s, bringing the London-born cupcake brand and its digital-first platform into the group as part of a buy\u2011and\u2011build strategy under new private ownership. The deal \u2014 valuing Lola\u2019s at around \u00a330m in some reports and tapping into c.\u00a325\u201326m of revenue \u2014 marks Finsbury\u2019s first move into consumer-facing retail and signals further acquisitive expansion.<\/p>\n<\/div>\n
Finsbury Food Group has agreed to acquire a 70% stake in Lola\u2019s, the London-born cupcake and celebration-cakes business, in a deal the buyer says marks its first foray into direct-to-consumer retail. According to the company announcement, the move brings an established digital-first brand into Finsbury\u2019s broader bakery manufacturing group and forms part of a wider buy\u2011and\u2011build strategy under new private ownership. <\/p>\n
The group said Lola\u2019s generates around \u00a325 million of annual revenues; independent reporting has put the business\u2019s recent sales even higher, with one industry analysis noting more than \u00a326 million of turnover in 2024 and a marked improvement in pre\u2011tax profits. Media reports differ slightly on the transaction\u2019s headline value\u2014city sources cited by Sky and other outlets suggested the deal values the business at roughly \u00a330 million, while public statements from the parties emphasise the strategic rationale rather than confirming a precise price. <\/p>\n
Lola\u2019s operates a multi\u2011format estate centred on high\u2011footfall travel and shopping hubs: the business runs around 40\u201345 kiosks and collection lockers across major London transport stations, operates nationwide delivery from its ecommerce platform and even maintains an international franchise in Japan. The brand is reported to employ roughly 400 people and to have shifted significant volumes online in recent years, with ecommerce accounting for a material share of sales. <\/p>\n
Finsbury\u2019s chief executive, John Duffy, welcomed Lola\u2019s into the group in the company statement, saying the acquisition is \u201can exciting milestone\u201d for the buy\u2011and\u2011build strategy and will allow Finsbury to \u201center the direct\u2011to\u2011consumer market for the first time.\u201d Asher Budwig, Lola\u2019s managing director, added in the same announcement that he was \u201cthrilled to be working with the Finsbury team\u201d and expressed confidence that Finsbury\u2019s manufacturing and commercial capabilities could be used to scale the brand further. The parties have said Lola\u2019s will continue to be led by its existing management team. <\/p>\n
The transaction sits against a backdrop of corporate change at Finsbury itself. The group was taken private by DBAY Advisors following a recommended acquisition late in 2023, a move advisers said was intended to give management scope to pursue transformational M&A and international expansion without the constraints of public markets. Industry commentators frame the Lola\u2019s deal as a logical extension of that strategy: buying a consumer\u2011facing brand with established retail sites and a digital platform complements Finsbury\u2019s manufacturing footprint and customer list. <\/p>\n
Financially, Lola\u2019s has been on an upward trajectory under current management, according to market reporting earlier this year which highlighted growing sales and improved profitability as the business invested in ecommerce and travel\u2011hub locations. Management has flagged further rollout plans across the South East and beyond, underlining why an acquirer focused on scale and manufacturing synergies might find the brand attractive. <\/p>\n
That opportunity comes with operational challenges. Converting a primarily wholesale and manufacturing group into an effective owner of consumer retail sites and online fulfilment requires integrating supply chains, balancing cost\u2011to\u2011serve for city kiosks and lockers, and protecting brand equity while pursuing expansion. Finsbury\u2019s executives point to the group\u2019s production strengths as the means to mitigate those risks, while Lola\u2019s leadership stresses continuity of day\u2011to\u2011day operations. <\/p>\n
As the parties move from announcement to integration, attention will centre on how quickly the combined group can translate complementary capabilities into growth at margin. For now, Finsbury has added a recognisable consumer brand to its portfolio and signalled that further acquisitions are likely to follow as it pursues the buy\u2011and\u2011build plan under private ownership.<\/p>\n