UK: Dorset Cereals owner coy on sale talk
Langholm Capital, the private equity group that owns UK cereals producer Dorset Cereals, is remaining tight-lipped over speculation that it is considering selling the company.
When contacted by just-food, a spokesperson for Langholm, which acquired Dorset Cereals in 2005, declined to comment on an article in the Daily Telegraph today (3 December) that suggested a sale was being considered.
The spokesperson would also neither confirm nor deny that the private equity group had appointed corporate finance group McQueen to advise it on its strategic options, as the newspaper had suggested.
Meanwhile, Dorset Cereals marketing director Patrick Horton dismissed the report as speculation. Horton told just-food that rumours of this kind were "not surprising" given the growth that the company was achieving, adding that "people notice small, interesting companies doing well".
Since relaunching in spring 2006, Dorset Cereals has trebled its share of the UK muesli market, and is now the number two brand with a 22% share, Horton said.
The Daily Telegraph suggested that the company, which could fetch more than GBP50m (US$103m), is likely to attract interest from a wide range of possible buyers, including privately-owned health foods group Wellness Foods, and Weetabix, which already owns the UK's leading muesli brand, Alpen.
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