UK-based United Biscuits has completed the separation of snacks division from the rest of the operations, as a part of its plan to sell the company in parts.
To lead the snacks division, United Biscuits has appointed the current president of Kraft Foods UK/Ireland Nick Bunker as the new chief executive, who will take charge on 1 September.
The snack business includes several brands such as McCoy's potato chips, Hula Hoops, Mini Cheddars and KP nuts, while the rest of the business represents nearly two-thirds of the company's sales and sells products including biscuits and cakes.
The snack division, which will be renamed as KP Snacks, has four factories in the UK and employs around 1,500 employees.
United Biscuits noted that the snacks category in the UK is currently growing at 6% per annum and there are significant growth opportunities both in the domestic and international markets.
In March 2012, United Biscuits hired Credit Suisse to separate the company's salty snacks business ahead of its sale.
The bidding process for the sale of the snacks division, which is valued at £500m, is expected to be initiated by September 2012, while the sale of the rest of the business, which is expected to fetch nearly $1bn, is not likely to be initiated until 2013, reported Financial Times recently, citing people familiar with the matter.
In July 2010, United Biscuits' owners, the US private equity firm Blackstone and the French buy-out firm PAI Partners, failed to sell the combined company for nearly £2bn.
Blackstone and PAI appointed JPMorgan and Goldman Sachs to sell United Biscuits, which attracted companies such as Kellogg's, Kraft Foods, Campbell Soup and China's Bright Foods.
However, the sale failed to materialise despite Bright Foods entering into exclusive talks over the acquisition that valued the UK company at £2.5bn, including debt.
United Biscuits, which was bought by Blackstone and PAI for £1.6bn in 2006, has 11 facilities in the UK.
