German snacks group Intersnack has snapped up Hula Hoops maker KP Snacks from United Biscuits to form a £1.7bn turnover business.
The deal comprises the KP Snacks nut and crisp brands, such as McCoy’s and KP Nuts, which together have an annual turnover of £280m. It excludes baked bagged snack brands including Mini Cheddars and Twiglets, which will continue to be owned by United Biscuits.
The size of the deal, which is expected to close during the first quarter of 2013, was not disclosed although it is rumoured to be worth upwards of £500m.
“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,” said David Fish, group non-executive chairman of United Biscuits, which is jointly owned by Blackstone group and PAI Partners.
“It also allows UB to concentrate its attention solely on continuing to develop and grow its baked biscuit and snack product range
Intersnack has an established business in the UK with a turnover of £80m. Its brands include Pom-Bear, Penn State and Percy Dalton’s.
The company said further expansion of the UK market remained a key priority for Intersnack.
“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,” said Intersnack executive chairman Maarten Leerdam.
“Intersnack is a strong believer in the power of iconic, local hero brands, and we aim to leverage these strengths for further expansion.”
Blackstone and PAI bought United Biscuits in 2006 for about £1.6bn. In 2010, they tried and failed to sell the company in its entirety to Bright Food Group and decided afterwards to split the snacks and biscuits sides of the business to attract trade buyers.