Ferrero Group in £250m bid to buy British Fox’s Biscuits
Italian confectionary giant Ferrero Group is planning a £250m bid to buy British-based Fox’s Biscuits.
The owner of brands such as Kinder and Nutella is working on a takeover deal with advisers, according to Sky News.
Demand for biscuits has risen since the coronavirus lockdown, halting a downward trend as consumers opt for healthier snacking options.
Fox’s Biscuits has drawn interest from some of the industries biggest names and current owner, 2 Sisters Food Group (2SFG), has asked for offers to be submitted this week, the report claims.
Among Ferrero’s competitors include the owner of Jammie Dodgers, Burton’s Biscuits, and European manufacturer Biscuit International.
Fox’s is expected to command between £250m and £300m at auction before the end of this year, which will be overseen by Rothschild. Ferrero is reportedly being advised by Houlihan Lokey.
It would be the latest in a number of sales by 2SFG, which has already offloaded assets including pizza brand Goodfellas, and the UK’s biggest Christmas pudding supplier, Matthew Walker.
Its parent company, Boparan Holdings, has £630m of debt repayable in 2021 in the form of high-interest bonds and the firm’s ability to invest has been hit by a bill of £50m in interest payments each year.
In a recent trading update, the company said it was examining its options to refinance the current structure, with an aim to become a “poultry-focused business”.
“To reach this objective, the company continues to explore the disposal of non-core businesses, such as its bakery division, but the group will only dispose of these businesses when the time is right and the company is confident of realising the best value,” it said.
A spokesman for 2SFG declined to comment. Ferrero has yet to respond to request for comment.