Charles Russell Speechlys advises Cake Box Holdings plc on their £22 million acquisition of Ambala Foods Limited

Charles Russell Speechlys has advised AIM-listed Cake Box Holdings on its £22 million acquisition of Asian sweets brand Ambala Foods Limited, and Cake Box’s associated £7.2m equity financing and new £15.2m debt line.

This acquisition expands Cake Box’s product range and provides strategic growth opportunities. This £22 million deal consists of a £16 million purchase price for Ambala and a £6 million purchase price for Ambala’s manufacturing facility in Welwyn Garden City. It brings together Cake Box, the UK’s largest franchise retailer of fresh cakes, and Ambala, a family run manufacturer and retailer of Asian sweets, to expand both brands market presence and accelerate their growth. This acquisition creates a unique blend of traditional and contemporary delicacies that appeal to a diverse audience, ultimately driving growth and profitability.

Michael Botha, CFO for Cake Box, commented:

“It was a pleasure to work with the team at Charles Russell Speechlys on such an exciting acquisition. Their expertise in the sector and seamless service were key in the completion of this transaction. Their ability to provide a full range of advice in relation to the corporate acquisition, real estate acquisition, equity fundraise and new debt line was invaluable.”

Paul Arathoon, Corporate Partner, commented:

“We were delighted to support Cake Box on this acquisition that will allow them to expand and develop whilst continuing to provide their customer base with quality products and customer service. We look forward to seeing the positive impact of this deal on both Cake Box and Ambala.”

The team was led by Corporate Partner Paul Arathoon and Senior Associate Ashwin Pillay, with Danny Sullivan, Yvett Talas and Leigh Stimpson advising on the debt facility with Barclays, and Eddie Richards, Sarah Keens, Pippa Clifford and Lia Renna advising on the acquisition of the manufacturing facility. Additional support was also provided by James Stewart and Arjun Thakrar (Corporate Tax), Michael Powner, Chiara Muston and Tilly Whittingham (Employment) and Caroline Young and Dillon Ravikumar (Commercial).