Burton’s Biscuits owner Ontario Teachers’ Pension Plan signalled when it purchased the firm in 2013 that it would look to make strategic acquisitions as part of its growth plans.
City analysts have long touted the Fox’s brand as such an acquisition, as it was said not to fit in with the rest of 2 Sisters Food Groups’ businesses.
2 Sisters acquired the Fox’s Biscuits brand as part of its buyout of Northern Foods in 2011.
One analyst told FoodManucfacture.co.uk that the deal would make sense.
Valued at £340M
The sale of Fox’s has been valued at around £340M by Rothschild, according to news agency Reuters.
Talks are in their early stages and no deal is certain at this moment in time, a source told Reuters.
Fox’s Biscuits produces its products – including seasonal tins, Hovis, Party Rings, Rocky, Viennesse, Chocolatey, Chunkie cookies and Crunch and Creams – from three sites in Batley in West Yorkshire, Kikham near Blackpool and Uttoxeter in Staffordshire.
Ontario Teachers’ Pension Plan has already showed its endorsement of snack food brands, having revived Burton’s Daily Fish ‘n’ Chips.
Fox’s Biscuits appears to be performing well at present and 2 Sisters’ branded division saw like-for-like sales up 0.2% to £101.3M in the 13 weeks to October 31 2015.
In December the company said: “Our investments in quality and marketing at Fox’s Biscuits have helped us deliver a strong performance in biscuits, despite a competitive environment, with sales up substantially over the quarter.”
Burton’s Biscuits declined to comment when approached by FoodManufacture.co.uk.
Meanwhile, read about the highs and lows of 2 Sisters Food Group’s 2015 with our exclusive photogallery of its year in pictures.
It was an eventful year for the poultry processor – full of news about jobs, investments, sales and strikes.