UK snack foods and confectionery group Zetar has bought bakery group Britannia in a deal that could ultimately be worth GBP27.7m (US$55m).

Zetar said today (24 May) that it would pay an initial GBP4.7m for Britannia with further payments dependent on the company's financial performance.

Britannia, based in the north-east of England, makes a range of baked snacks, biscuits, crisps and cereals. Zetar said the loss-making Britannia has not had the resources to "fully exploit" the potential of the business.

The deal was made through Zetar subsidiary The Baked Snacks Company (BSC). Zetar said the combination of its sales and distribution network with Britannia's manufacturing facility would "transform" the business.

Zetar chief executive Ian Blackburn added: "The formation of The Baked Snacks Company and its purchase of the assets and business of Britannia provides Zetar with an opportunity to enter the emerging healthier baked snacks sector and to quickly build BSC into a significant business."