Italian confectionery giant Ferrero has agreed to buy British biscuit maker Burton’s just eight months after acquiring Fox’s Biscuits.
The acquisition via Ferrero’s Belgium-based holding company CTH includes six production facilities in the UK, which are based in Blackpool, Dorset, Edinburgh, Livingston, Llantarnam and Isle of Arran, and employ about 2,000 staff.
The financial terms of the deal were not disclosed.
The Burton’s Biscuit Company generated sales of more than £275m during the last 12 months from well-known brands including Maryland Cookies, Jammie Dodgers, Wagon Wheels, Paterson’s and Thomas Fudge’s.
It was revealed back in February that Burton’s owner since 2013, the Ontario Teachers’ Pension Plan (OTPP), had put the business up for sale. Sources quoted at the time suggested the UK’s second-largest biscuit manufacturer would attract considerable interest and could be worth upwards of £360m. Demand for biscuits has soared over the last year as people spent more time at home.
OTPP has spent the past four years overhauling Burton’s after its revenues and profits were hit by the sale of the Cadbury licence back to Mondelēz.
A statement from Ferrero said the acquisition would enlarge its offer of products in the sweet biscuits market, further to the previous acquisitions of Biscuits Delacre (in 2016), Kelsen (in 2019), and Fox’s (in 2020). The Italian firm also recently bought Eat Natural, a UK-based maker of cereal bars, toasted muesli and granola.
NAM Implications:
- Another example of Lockdown inevitabilities…
- (anything can happen, in terms of amalgamations and takeovers)
- Retailer takeovers raise the need for prices & terms harmonisation…
- …whilst supplier takeovers can result in new forms of competition for rivals.
- Best anticipate moves that could harm you…
- …and prepare accordingly.
