Cake Box to acquire Ambala Foods for £22m
Founded in 1964, Ambala has been family-run since its inception and currently operates 22 stores – 19 of which are owned stores and three being franchised
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Fresh cream cakes retailer, Cake Box, has conditionally agreed to acquire Ambala Foods Limited, a UK-based manufacturer and retailer of Asian sweets (Mithai), for £22m.
The total sum will be divided into £16m for Ambala and £6m for its manufacturing facility in Welwyn Garden City.
Founded in 1964, Ambala has been family-run since its inception and currently operates 22 stores – 19 of which are owned stores and three being franchised.
According to Cake Box’s board, the acquisition will provide it with a number of “compelling” synergies and strategic growth opportunities.
In addition, the acquisition is expected to be immediately earnings enhancing following the integration of Ambala into Cake Box.
Sukh Chamdal, chief executive officer of Cake Box, said: “We are pleased to announce the acquisition of Ambala Foods Ltd, a leading manufacturer and retailer of Asian confectionery in the UK since 1964. This strategic acquisition represents a significant opportunity to leverage the strengths of both brands to expand our market presence and accelerate our growth.
“Ambala’s rich heritage and established customer base complement Cake Box’s values and commitment to quality and innovation. 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.”
He added: “We are confident that this acquisition will resonate with Cake Box’s existing customer base and to its commitment to quality products and customer service.”