United mulls biscuit breakup
15 August 2011 10:30
The owners of United Biscuits are mulling a plan to split the McVitie's and Jacob's business into two, it has been reported.
The Sunday Times said the move would see the biscuit division, which also makes Jaffa Cakes and Penguin biscuits, separated from its crisps and nuts operation, which includes KP, McCoy's and Hula Hoops.
Private equity groups Blackstone and PAI Partners have reportedly earmarked the end of the year to begin fresh talks about offloading the business, which they bought for £1.6 billion in 2006 and attempted to sell last year.
Campbell Soup Company is expected to renew its interest in the biscuits arm, which accounts for around three-quarters of United's sales.
Intersnack, the company behind the Penn State pretzel brand, and Diamond Foods, which owns Kettle potato chips, are tipped as possible bidders for the snacks arm.
United, based in Hayes, Middlesex, is Britain's biggest biscuit producer, employing 7,000 staff and generating annual sales of around £1.3 billion.
It dates back to 1948, when it was formed from the merger of two Scottish family businesses - McVitie & Price and MacFarlane Lang.
Talks with several big groups, including China's Bright Foods, Kellogg's and Kraft Foods, failed to drum up a credible bid last year.
Today's report said advisers from Goldman Sachs and JP Morgan will start a process involving the possible split in the coming months.
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