Wednesday, December 5, 2012

News: KP Nuts swallowed up by Intersnack


The Rotherham facility of KP Nuts has been acquired as part of a massive deal between United Biscuits and German-headquarted multinational group, Intersnack.

United Biscuits, owned by investors Blackstone and PAI Partners, has agreed to the sell its KP Snacks business which makes brands including KP Nuts and McCoy's, Hula Hoops and Nik Naks.

The number two snack manufacturer in the UK has an annual turnover of £280m and employs approximately 1,500 people, including around 300 at Eastwood in Rotherham.

Intersnack Group is one of the leading manufacturers of savoury snacks in Europe and is aiming to record an annual turnover of £1.37bn. Brands in the UK include Pom-Bear and Penn State pretzels.

The combination is expected to further develop KP Snacks' brands and explore new markets whilst further expansion in the UK market remains a key priority for Intersnack.

The transaction, for an undisclosed sum, is expected to close during the first quarter of 2013 and includes, among other assets, KP's UK manufacturing facilities and a head office.

Maarten Leerdam, executive chairman of Intersnack, said: "We are very pleased to be teaming up with KP Snacks, which represents a strong and highly complementary fit with the Intersnack family of leading businesses throughout Europe.

"Intersnack is a strong believer in the power of iconic, local hero brands, and we aim to leverage these strengths for further expansion. As a privately owned company, we operate our business with a long-term view. As such, the joint know-how of KP Snacks and Intersnack will drive the development of these iconic brands."

David Fish, group non executive chairman at United Biscuits, added: "KP Snacks is an excellent fit into Intersnack's existing operations. This exciting deal ensures that the KP brands continue as part of a major European Snacks business, which gives them the scale and support needed in a competitive market place. It also allows UB to concentrate its attention solely on continuing to develop and grow its baked biscuit and snack product range."

The new owners stated that they strongly believe in maintaining local management and local production. It employs an operating model in which its individual companies are responsible for generating long-term value.

Leerdam, added: "We appreciate the significance of acquiring a part of British heritage and the proposed transaction reflects our goal to accelerate the transformation of Intersnack's strategic position in the UK. We look forward to working with the existing KP Snacks management team and employees to leverage this opportunity."

KP began life in 1853 selling sugar, confectionary, jams and pickles. Production of KP Nuts began in Rotherham in the 1940's and in 1968 it became part of United Biscuits.

Today the facility produces around 140 million packs of nuts each year.

KP Nuts website



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