Blackstone Group and PAI Partners, the private-equity owners of United Biscuits, are considering the possibility of selling the UK firm’s salty snacks business.
According to a report in the Wall Street Journal, Blackstone and PAI have appointed Credit Suisse to consider options for its salty snacks business, which has been valued at around GBP500m (US$781.4m).
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In 2010, Blackstone and PAI had looked at selling all of United Biscuits for around GBP2bn. The sale attracted interest from the likes of Bright Foods, Kraft Foods and Kellogg, but a deal failed to materialise.
The private-equity groups have since been working to separate the salty snack unit, which owns brands including KP Nuts and Hula Hoops, and just-food understoods that various options are being investigated, including a sale of the business. Blackstone and PAI would keep United Biscuits’ biscuit and cake arm, which owns brands like Penguin and Jaffa Cakes, although it is unclear if, at some stage, that side of the business would also be up for sale.
PAI and United Biscuits declined to comment on the report, while Blackstone was unavailable for comment at time of press.
However, a source familiar with the situation told just-food that the move is being considered because it would “realise more value” for the company’s owners.
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By GlobalData“Both businesses would operate more effectively on a separate basis, which would realise more value for shareholders.”
