Shore Capital is delighted to have acted as Nominated Adviser and Sole Bookrunner to Cake Box on its £7.2m fundraise to part-finance the acquisition of Ambala Foods for £16m and Ambala’s manufacturing facility for £6m as part of a £22m deal. The fundraise consists of a £7m Placing and £0.2m retail offer. The Placing was substantially oversubscribed and was strongly supported by both existing and new institutional investors.

Cake Box is the UK’s largest retailer of fresh cream celebration cakes and since Shore Capital supported its IPO in 2018,  the Company has successfully grown its franchise estate from 91 stores to 232 stores. Growth to date since the IPO has been entirely organic with no additional capital being raised.

Cake Box expects to continue to grow the business and has recently raised its franchise store target to 400 locations in the UK. The Company believes that this acquisition is highly complementary to the existing Cake Box business and will help further accelerate and enhance the Company’s current successful organic growth strategy.

Ambala currently operates 22 stores and is a prestigious UK-based brand specialising in Asian confectionary (Mithai) and savoury products and was established in 1965. Mithai has strong cultural, religious and social importance in the Asian community. Ambala has been family owned for many years and the Board believes there is a significant opportunity to expand the business as part of the Cake Box family.

Shore Capital looks forward to working with the expanded business.