Mon, 01 Mar 2021 | BUSINESS SALE
UK-based biscuit maker Burton’s Biscuits is set to be put up for sale by its owner Ontario Teachers’ Pension Plan (OTPP). The Canadian fund has reportedly hired Stamford Partners to assess options for Burton’s and conduct a sale process over the next few months.
Early reports have indicated that a sale could generate as much as £360 million. Burton’s, which makes popular biscuits including Wagon Wheels, Jammie Dodgers and Maryland Cookies, has seen demand surge during COVID-19 lockdown.
The sale is expected to be highly competitive, with interested parties reported to include biscuit makers Biscuit International, Ferrero (which has recently acquired UK brands Fox's andEat Natural) and Pladis, as well as several private equity firms.
OTPP acquired Burton’s in 2013 and oversaw several tumultuous years of ownership, including plummeting revenues after it sold the license to make Cadbury’s biscuits to Mondelez. However, a change in strategy and a new deal with Mars, accompanied by strong overseas sales, had seen the company recover prior to COVID-19.
As lockdown came into force in the UK, Burton’s sales jumped even further, climbing 21 per cent in the month leading up to March 22. Despite this initial surge levelling out, the company still recorded solid sales growth throughout the year.
Burton’s Biscuits’ most recent accounts, for the year ended December 28 2019, show the company generating gross profit of £41.4 million on revenue of £246 million, compared to gross profit of £39.7 million on revenue of £235 million a year earlier. However, the company reported a £9.7 million loss for the year, down from losses of £8.9 million in 2018.
Burton’s EBITDA for 2019 stood at £17.6 million, up from £14.59 million in 2018. Preliminary reports have suggested that the company's EBITDA may have risen to around £30 million in 2020.
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