Fri, 19 Nov 2010 | BUSINESS SALE
United Biscuits has been placed on the market by its private equity owners Blackstone and PAI, after exclusive talks with Chinese food company Bright Food ended recently.
The talks broke down when Bright Food's offer of up to £2.5bn was not confirmed, though informal discussions are continuing. Now the previously interested parties US food giants Kraft, Kellogg’s and Campbell Soup may be invited back to submit bids.
It is thought that other buyout firms are now preparing to make bid approaches, while high levels of interest from trade buyers were noted by sources close to the firm.
Reports of the intended sale emerged in July this year, after the owners announced that they wanted to sell in the autumn with completion on a deal in early 2011. Goldman Sachs and JP Morgan are acting as advisers to Blackstone and PAI.
If Bright Food pulls out of the sale completely, an auction for the UK's biggest snacks manufacturer will take place in early 2011.
United Biscuits, the maker of Hula Hoops crisps and McVitie’s biscuits among other well-known brands, was bought by Blackstone and PAI Partners in 2006 for £1.6 billion from a consortium of investors.
The manufacturer has yearly revenues of £1.3 billion, profits of £223 million, and carries debts of £1.2 billion. Its private equity owners finally decided on the option of selling after having considered a London listing.
Founded in 1948 after a merger between Scottish businesses McVitie & Price and MacFarlane Lang, the Middlesex-based biscuit giant now employs 7,000 people.
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