Associated British Foods is to buy a 20% stake in cereal manufacturer Jordans.

The food giant will acquire the share capital from the founding Jordan family, which will continue to control the business.

The Jordans product range includes breakfast cereals, cereal bars, muesli and oat porridge.

The company has three manufacturing sites and has its head office in Biggleswade, Bedfordshire. It had sales of £81m for the year ended February 2007.

George Weston, ABF chief executive, said: “This investment is an exciting development for our UK branded grocery business. Jordans is a wonderful brand which is positioned well to benefit from the consumer's growing desire for natural ingredients and healthy eating. I look forward to the development of the brand's full potential.”