European Intersnack Group has snapped up United Biscuits’ KP Snacks for an undisclosed sum in a move that will enable the UK firm to 'dedicate focus' to its biscuits business, United Biscuits said.
The sale to the Pom-Bear maker is expected to close during the first quarter of 2013.
Speaking to BakeryandSnacks.com, Keren McCarron, corporate communications manager for United Biscuits said that the sale will enable the firm to dedicate focus on its biscuits business.
“We’ve got a strong portfolio of household brands which have seen considerable growth. Following this sale, we are just going to dedicate focus on biscuits now,” McCarron said.
She noted that the main focus of the acquisition for both firms was growth, and that United Biscuits is “excited” to see what Intersnack will do with the KP Snacks brands.
The deal has been rumored to be close to the value of $600m but McCarron told this site that no financials on the deal will be disclosed.
She added that the firm has no further sale or acquisition plans.
Maarten Leerdam, Intersnack’s executive chairman said: “We are very pleased to be teaming up with KP Snacks, which represents a strong and highly complementary fit with the Intersnack family of leading businesses throughout Europe. Intersnack is a strong believer in the power of iconic, local hero brands, and we aim to leverage these strengths for further expansion.”
Leerdam said the joint know-how of both firms would enable the successful development of KP’s iconic brands.
David Fish, group non-executive chariman of United Biscuits, said KP Snacks is an “excellent fit” into Intersnack’s operations.
“This exciting deal ensures that the KP brands continue as part of a major European Snacks business, which gives them the scale and support needed in a competitive market place. It also allows United Biscuits to concentrate its attention solely on continui9ng to develop and grow its baked biscuit and snack product range,” Fish said.
KP Snacks brands sold to Intersnack include McCoy’s, Hula Hoops, KP Nuts, Space Raiders, Nik Naks, Wheat Crunchies, Skips, Phileas Fogg, Discos, Roysters, Choc Dips, Brannigans, Frisps, KP Crisps, KP Mini Chips and Cheese Footballs.
United Biscuits will retain ownership of its bagged snack brands manufactured in its biscuit factories including Mini Cheddars and Twiglets.
Other assets passed over to the German-based snack player include KP’s UK manufacturing facility and head office.