UB's buyers offer hope on pensions

The agreed new owners of United Biscuits (UB) have reassured staff that they would plug the company's £213M pension deficit, but have said nothing about long-term job security at key plants, including in Rotherham, Halifax and Ashby-de-la-Zouch.

As Food Manufacture​ went to press, union bosses were seeking urgent talks with private equity firms Blackstone and PAI, which agreed last month to buy UB in a £1.6bn deal, to be completed in December.

The Transport and General Workers' Union, which has nearly 900 members at UB, said private equity deals were "invariably struck for quick returns for shareholders". It added: "The workforce and their pensions must be taken into account."

However, UB said the new owners had confirmed they would put a "significant lump sum" into the pension scheme and accelerate contributions. "When the deal is completed, we will be able to talk about future plans, but there will be no immediate job losses or site closures," it said.

The transaction would be financed by equity contributed equally by Blackstone and PAI, and debt financing from Barclays, Goldman Sachs and JP Morgan. One senior investment figure said the takeover was the largest debt-to-equity deal he had seen.

UB, owned by private equity groups Cinven, MidOcean and PAI, has 15 factories, including 11 in the UK. It is number one in the UK biscuits and nuts markets with brands including McVitie's and Jacob's. The UK business employs more than 7,500 people.

Premier Foods pulled out of the running for UB in September.