Wellness Foods bought Dorset Cereals from Langholm Capital in 2008

Wellness Foods bought Dorset Cereals from Langholm Capital in 2008

Kellogg, Weetabix and Associated British Foods are reportedly eyeing UK cereal business Dorset Cereals.

Sky News has reported the three food groups are among suitors for Dorset Cereals, which is part of the Wellness Foods, a health food group backed by horseracing tycoons JP McManus and John Magnier. Private-equity firms are also said to be interested, the broadcaster reported.

Last month, The Daily Telegraph reported Wellness Foods was looking to sell the business for GBP40m-50m (US$66.3-82.8m).

Speaking to just-food today (4 April), a spokesperson for Dorset Cereals told just-food the business had attracted interest as it had seen "the fastest growth in the number of buyers of any major brand in the cereal category".

The spokesperson said: "As a consequence of our success our owners Wellness Foods have had interest from a number of companies. This is a confidential process and no decision has yet been made as to whether a sale will take place."

Kellogg would not comment on whether it was interested in Dorset Cereals but added: "As part of our strategy, we are always looking for strategic acquisitions or joint ventures that can strengthen our business."

Weetabix and ABF cereal arm Jordans did not respond to requests for comment.

Earlier this month, it emerged Wellness Foods had sold its Rowse Honey business to Irish food group Valeo Foods.