United Biscuits has been sold to Yildiz Holding, the Turkish owner of Ulker Biskuvi.
UB’s private equity owners Blackstone and PAI Partners confirmed the sale this afternoon, adding that “closing is expected shortly”.
The terms of the deal were undisclosed, but it is believed to value the maker of McVitie’s and Jaffa Cakes at around £2bn.
Lionel Assant, European head of private equity at Blackstone, said: “United Biscuits is a great business and has been an excellent investment for us. Yildiz is the best home for the company and will allow UB to fulfil its international growth ambitions.”
Martin Glenn, CEO of United Biscuits, added: “We look forward to being part of Yildiz as we continue to grow both in the UK and abroad where we are looking to expand our share of the biscuit and snacking markets and where there is huge potential for all our brands. I would like to thank Blackstone and PAI for their support. They have been instrumental in helping grow the company over the last few years.”
Goldman Sachs and JP Morgan acted as advisers to Blackstone and PAI, while Centerview Partners acted as advisers to UB.
Yildiz Holding was one of three final bids for UB lodged on Friday, with the others coming from cereals giant Kellogg’s and UK rival Burton’s Biscuits.
UB’s private equity owners ran a dual-track sale process, with a public listing understood to be the preferred option. However, a dramatic worsening of equity market conditions since the summer scuppered the possibility of a 2014 float, leading to the sale to Ulker.
Fellow food and drink IPO candidate Moy Park has delayed a decision on its potential float until 2015 because of the downturn in equity market conditions.
1 Readers' comment