LUXEMBOURG — CTH, a Belgian holding company affiliated with the Ferrero Group, has reached an agreement to acquire part of the Fox’s Biscuits business from 2 Sisters Food Group, which is part of Boparan Holdings Ltd., for £246 million ($317.18 million).
As part of the transaction, CTH would acquire Fox’s UK biscuit manufacturing sites at Batley and Kirkham, while 2 Sisters would retain the third site at Uttoxeter. Fox’s Biscuits primarily produces biscuits sold under the Fox’s brand at the Batley and Kirkham plants, while the Uttoxeter plant primarily makes own-label biscuits for major retailers.
Fox’s Biscuits brands include Rocky Bars, Party Rings, Crunch Creams, Crinkle Creams, Chocolatey and Viennese. The company also makes its own-label biscuits.
“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,” said Ranjit Singh, president of Boparan Holdings Ltd. “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. I wish all colleagues at the two Fox’s Biscuits sites every future success with an ambitious new owner.”
Ronald Kers, chief executive officer of Boparan Holdings Ltd., added, “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.”
Ferrero Group is the world’s third largest chocolate and confectionery business, and the company recently has diversified into new sectors as it expands its global portfolio. The company in 2019 acquired the cookie, fruit and fruit-flavored snack, ice cream cone and pie crust businesses from Kellogg Co. The purchase of Fox’s will be the second European biscuit acquisition within 12 months by a Ferrero-related company. Last year, CTH acquired the Kelsen Group from the Campbell Soup Co. for $300 million. The Kelsen Group is a manufacturer of baked snacks sold under such brands as Kjeldsens and Royal Dansk.
The transaction is expected to close on Oct. 31.