Ferrero today (7 October) insisted there is “significant scope” to grow the Fox’s Biscuits assets the Italy-based sweet-snacks giant has snapped up from UK manufacturer 2 Sisters Food Group.

The transaction, carried out through CTH, a holding company fully owned by the Nutella owner’s executive chairman Giovanni Ferrero, covered the acquisition for GBP246m (US$317.8m) of two Fox’s manufacturing sites that primarily produce biscuits sold under its namesake brand. A third factory that manufactures own-label biscuits will stay in 2 Sisters’ hands.

Asked how Ferrero believes the Fox’s assets can grow under new ownership, a spokesperson said: “The Ferrero-related company [CTH] decided to acquire Fox’s as the maker of much-loved, prestigious brands. The business has a history in the British biscuit market going back to 1853, with a very strong heritage, brand awareness among consumers and leading positions in every segment of the biscuit category. We believe that there is significant scope to grow the business.”

The spokesperson described CTH and Ferrero as “related entities” but said they are “independent and autonomous from one another”. The spokesperson added: “Some synergies may be envisaged in the future, but no plans are under discussion for the time being.”

Two Fox’s factories in Batley and in Kirkham in northern England are to change hands, with the deal expected to close by the end of the month. Some 1,500 staff work across the two sites. The spokesperson said the third facility, in Uttoxeter in the English Midlands, was not part of the deal as it would “represent an over-capacity in our development strategy”.

Ferrero said the businesses acquired generated sales of approximately GBP157m “during the last 12 months”.

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In the UK, Ferrero markets spread brand Nutella and its range of confectionery including Kinder, Thorntons, Tic Tac and Ferrero Rocher.

Last summer, CTH snapped up Denmark-based snacks business Kelsen, owner of brands including Kjeldsens Butter Cookies, from Campbell Soup Co. for US$300m. Four years ago, CTH acquired Belgian biscuits business Delacre.

In April last year, Ferrero struck a deal to buy a clutch of biscuit and snack brands in the US from Kellogg for US$1.3bn. That purchase followed a series of acquisitions by Ferrero in North America in the previous two years.

Boparan Holdings, 2 Sisters’ parent, acquired Fox’s Biscuits as part of its purchase of UK manufacturer Northern Foods in 2011. Three years later, the first speculation emerged over the future ownership of Fox’s and rumours have since swirled on and off.

The deal is the latest disposal by 2 Sisters, which over the last couple of years has offloaded its Matthew Walker Christmas puddings arm, seafood business Donegal Catch, its Goodfella’s pizza assets, its red-meat operations and the Manton Wood sandwich unit.

The company is now left with three main retail assets: poultry, which includes private label as well as branded products, the own-label Fox’s assets and Holland’s Pies.

Asked if the group was looking to sell Fox’s Biscuits in its entirety, a spokesperson said: “2 Sisters Food Group is best known as an own-label player. We have retained own-label biscuits.”

In a statement, Boparan Holdings president Ranjit Singh said: “Fox’s Biscuits has always been an attractive brand and as one of only two major independent biscuit makers in the UK, it is a prized asset in this market.

“We have listened to many interested parties over the years, but we have always been clear that Fox’s would only be sold to the right new home, at the right time and for the right value. This sale represents another significant deal for us, underlining our commitment to our business turnaround. It strengthens our balance sheet even further and shows we are following through with our promises to focus on our key strengths.”

In July, Boparan Holdings provided a trading update – the company’s fourth quarter ran for the 11 weeks to 11 July – in which the company said it was continuing to “implement its strategy by further simplifying its structure, aiming at ultimately becoming a poultry-focused business”.

Ronald Kers, the CEO of Boparan Holdings, said today: “This sale is in line with our strategy and is further good news as we build on two years of strong turnaround momentum and continue to focus on our core business. It strengthens our liquidity position and reduces our leverage ahead of our planned refinance of the business.

“We believe the sale to Ferrero is not only beneficial for 2 Sisters Food Group, but it means a positive future for the Fox’s brand with an owner who has a compatible culture and a global reputation for high-quality branded chocolate and biscuit products.”