Ferrero to pay £246m for Fox’s Biscuits

2 Sisters Food Group has agreed to sell its bakery business to a Ferrero-related company

A Ferrero-related company is set to acquire Fox’s Biscuit, a bakery business of 2 Sisters Food Group, in a deal worth £246 million. The transaction includes manufacturing sites at Batley and Kirkham, facilities that primarily produce biscuits sold under the Fox’s brand. 2 Sisters will retain the third site at Uttoxeter, which produces own-label biscuits for major retailers.

Italy’s Ferrero Group is the world’s third-largest chocolate and confectionery business. The corporation has diversified into new sectors as it expands its global portfolio.

The purchase of Fox’s will be the second European biscuit acquisition within 12 months by a Ferrero-related company.

Ranjit Singh, president of Boparan Holdings, the parent company of 2 Sisters Food Group, said: “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.”

Fox’s Biscuits is one of Britain’s best-loved heritage biscuit brands and a major player in the biscuit sectors in which it operates.

It makes household names such as Rocky Bars, Party Rings, Crunch Creams, Crinkle Creams, Chocolatey and Viennese, as well as making own-label biscuits and selection boxes for major retail outlets.

Ronald Kers, chief executive of Boparan Holdings, said: “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 refinancing of the business.”

The formal completion of the sale is expected on 31 October.

Rothschild & Co acted as sole financial adviser to 2 Sisters on the disposal.