The acquisition will include operations employing over 1,400 people in Scotland.

The deal, set for shareholder voting, has received unanimous recommendation from the Finsbury board. If approved, investors will receive 110p for each Finsbury share, presenting a premium of nearly 24% to the previous 89p closing price. News of the acquisition propelled Finsbury shares, closing at the offer price of 110p.

DBay Advisors has held shares in Finsbury since last year and believes that taking the bakery group into private ownership will overcome the growth barriers imposed by its listing on London’s Alternative Investment Market (AIM).

Alexander Paiusco, chief executive of DBay, said: “We are pleased to have reached agreement with the Finsbury Board and that the acquisition has received a unanimous recommendation.

“We have been supportive shareholders of the business for over a year and have been impressed with the management team during our ownership, but we strongly believe Finsbury would benefit from transformational M&A, including international expansion, and this would be better achieved in private ownership without the barrier of the current listing.”

Peter Baker, non-executive chairman of Finsbury, said: “For the next phase of the Finsbury Group’s development, the business will need to pursue strategic, transformational M&A to achieve the scale required to be successful in an increasingly competitive and demanding marketplace.

“I am confident that Finsbury will thrive under DBay’s stewardship in the private market, with access to DBay’s investment and operational support to pursue the current strategy of scaling Finsbury’s buy-and-build M&A in the future.”

Finsbury has a substantial footprint in Scotland, owning Lightbody in Hamilton, Johnstone’s in East Kilbride, and Coatbridge-based Lees, acquired in January for £5.7m. The companies collectively produce an array of baked goods and employ a significant number of people across North Lanarkshire.

Finsbury’s recent financial records revealed a 16% rise in revenues amounting to £413.7m for the year to 1 July 2023.

The acquisition is scheduled to conclude in Q4 2023, subject to customary closing conditions. DBay Advisors aims to unlock long-term value in Finsbury, exploring enhanced growth opportunities and international expansions, thus potentially increasing Scotland’s footprint in the international food manufacturing sector.