Under today's agreement terms Finsbury said both firms will work as "contractual partners" in the UK fresh bakery sector to introduce additional gluten-free products under the Genius brand.
Genius has also acquired has an option to buy Finsbury’s UCB and Livwell gluten-free bakery businesses and assets for £21m at any point within the next 12 months, although Finsbury will retain its potato scone and yum-yum products made by the subsidiaries.
Cake, bread and gluten-free giant Finsbury (which recorded a £168.33m turnover for 2010) said that proceeds from any sale option would be use to repay debt and for "general corporate purposes".
Momentum to fast-growing area
Finsbury chief executive John Duffy (pictured) said, "We are delighted to announce the formation of this joint venture with Genius…We have enjoyed a successful working relationship with Genius, and believe that this joint venture will cement and develop this relationship further.
“We also believe the joint venture will give added momentum to the fastest growing area of our business and we look forward to working with Genius to drive forward our market leading position for the longer term."
Genius chief executive Gervase Cottam said: "We are looking forward to further developing the strong team that has been working with Finsbury as a key partner in the UK. Both parties are aligned and focused on developing great tasting gluten-free products that deliver against the exacting demands of our customers and consumers."