Custard creams and bourbons maker Hill Biscuits has been sold to the UK arm of Spanish own label giant Cerealto to give long-standing private equity backer LDC an exit.
Originally started as a small shop in Manchester by John and Sarah Hill in 1855, the business today makes a range of digestives, ginger nuts, custard creams, bourbons, malted milks and gingerbread men under the Hill brand, as well as private label for the discounters in the UK and Europe.
LDC backed a management buyout of Hill in 2017 from the Bennett family, who completed their own MBO in 1980 when the business was owned by Rowntree’s.
Under LDC, the business invested in new technology to improve manufacturing efficiencies and increase capacity. During the seven-year partnership, Hill Biscuits more than doubled revenues to in excess of £40m in 2024, including reporting sales growth of 44% last year. Today, it employs 350 staff.
CEO Frank Bird said: “This acquisition marks a pivotal moment in our journey to become the leading provider of everyday essential biscuits.
“This exciting opportunity allows us to harness and energise the experience and excellence of our two bakeries, enhancing our capabilities to meet customer needs.”
He thanked LDC for its support and added, as the business approached its 170th anniversary, that it looked forward to partnering with Cerealto UK and was “poised to accelerate growth and innovation even further”.
LDC partner Rob Powell said: “Hill Biscuits is a renowned and trusted supplier of quality products and it’s a business that refuses to stand still, achieving impressive rates of growth over recent years. We are proud to have supported the business and we wish the team every success for the future.”
Cerealto UK is a portfolio company of Davidson Kempner Capital Management and Afendis Capital Management. Financial terms of the transaction were not disclosed.
LDC and Hill Biscuits were advised by Clearwater and Addleshaw Goddard.
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