German snack firm Intersnack has agreed to acquire UK-based United Biscuits' (UB) snacks division, KP Snacks, from its private equity owners Blackstone and PAI Partners.
This move is a part of the Intersnack's strategy to strengthen its snack business in the UK.
Although the terms of the deal were not disclosed, the acquisition is estimated to be valued at more than 400m.
As a part of the transaction, Intersnack will acquire KP Snacks' UK manufacturing facilities and a head office. UB will continue to own its baked bagged snack brands such as Mini Cheddars and Twiglets that are manufactured in its biscuit facilities.
The transaction is expected to be completed in the first quarter of 2013.
Intersnack executive chairman Maarten Leerdam said that KP Snacks complements Intersnack's businesses across Europe.
UB non executive chairman David Fish said that this transaction allows KP brands to continue as a part of a leading European snacks company.
"It also allows UB to concentrate its attention solely on continuing to develop and grow its baked biscuit and snack product range," Fish added.
KP Snacks owns brands such as McCoy's, Hula Hoops, KP Nuts, Nik Naks, Space Raiders, Wheat Crunchies, Skips, Discos, Phileas Fogg, Roysters, Choc Dips, Brannigans, Frisps, KP Crisps, KP Mini Chips and Cheese Footballs..
It has four factories in the UK, with a workforce of around 1,500, and has annual revenues of GBP 280m.
Privately-owned Intersnack, which currently has a workforce of 6,500, produces branded and non-branded snacks and it expects to post annual revenues of 1.37bn GBP. Intersnack's UK arm produces savoury snacks under brands such as Pom-Bear, Penn State and Percy Dalton's.
