Dorset Cereals is to be bought by the Jordans & Ryvita Company, part of Associated British Foods.
The sale of the business, which is based in Poundbury, Dorset, is subject to regulatory approval and it will continue to operate as part of current owner Wellness Foods until the acquisition has been cleared.
ABF said it would be “inappropriate” to comment until the deal was approved by the authorities, but confirmed it planned to maintain the brand’s manufacturing operation in Dorset.
Sales of Dorset Cereals’ breakfast cereal lines – which include muesli, granola and porridge – were static last year at £26.8m [Nielsen 52w/e 12 October 2013], in a cereals market up 2.7% by value. The business also produces a cereal bars range, and last month launched a new TV push.
Sales of ABF’s Jordans cereals grew 31.5% last year to £19.1m.
Dorset Cereals declined to comment on the sale, saying it was “an ongoing, confidential process and the deal is yet to be concluded, subject to regulatory approval”.