Kettle Chips is looking at splitting off its lucrative US business to secure the maximum possible selling price for the company, according to sources close to negotiations.
The premium crisps manufacturer is also speaking only to trade buyers amid doubts private equity groups would be attracted by the hefty £440m price tag Kettle is chasing, the senior City source said. Talks are at an early stage, with interested parties currently signing non-disclosure agreements, but UK snackfood giant United Biscuits is said to be among the bidders.
"Kettle Foods is definitely looking for a trade buyer. That's partly because they want strategic tie-ups on distribution and routes to markets, but it's also because only a trade player with deep pockets could look to pay anything close to the asking price in this economic climate," said the source.
Current owner Lion Capital snapped up Kettle Foods for £170m in September 2006. UK turnover was £59m in its most recent accounts, according to The Grocer/Catalyst Fast 50. Global sales were $235m, making it the UK's 28th fastest-growing fmcg manufacturer.
Kettle Chips maker set for sale (5/10/09)