The acquisition introduces the Paterson’s shortbread brand into the Burton’s portfolio, along with leading foodservice biscuit and chutney brands Brontë, Café Brontë and Arran Fine Foods.
“Paterson Arran is a superb business with a first-rate product portfolio and baking expertise, which combines time-honoured methods with the very latest technology, to make outstanding products," said Burton’s Biscuit Company chief executive Nick Field.
“The acquisition is a further indication of our intent to increase our production capability, to extend our product offering and to continue growing our presence in the biscuit market. The move not only strengthens our branded proposition, Paterson Arran’s strength in foodservice and portion packing also unlocks significant new trading opportunities for our existing product portfolio.
“We’ll be looking to enhance the company’s presence in this sector, building on what is undoubtedly a leading capability in this market.”
Burton’s was advised on the acquisition by Stamford Partners.
Retiring Paterson Arran chairman Alan Hardie added: “I am honoured to have been at the helm of this great company for the last 25 years and am equally as excited about what the future holds. Paterson Arran and Burton’s have shared values of a commitment to baking excellence and to producing top-quality, great-tasting products. Everyone associated with them can be extremely proud.”
In a statement on its website, Paterson Arran said: "We are proud and excited to announce the latest step in our long journey. Burton's Biscuit Co has now acquired Paterson Arran.
"Burton’s Biscuits have set out a clear purpose to bake great biscuits and with great brands such as Maryland, Jammie Dodgers and Wagon Wheels, to name just a few, they are the perfect family for Paterson Arran brands to join. Together, we expect to bring you many new and exciting products while continuing with long established favouries."
Paterson Arran employs 200 people and runs two production facilities. These are the Royal Burgh Bakery in Livingston, West Lothian, which produces an award-winning range of shortbread, oatcakes, biscuits and cookies and the Old Mill, Lamlash, Isle of Arran, which primarily produces a range of chutneys, mustards and preserves.
The acquisition of Paterson Arran is the second major acquisition by Burton’s this year. In February, the company completed the acquisition of premium sweet and savoury biscuit manufacturer Thomas Fudge’s.
“This latest acquisition highlights that our owners, Ontario Teachers’ Pension Plan, are fully supportive of the journey we are on. They share our deep-rooted commitment to enhancing our baking credentials, to complementing our current portfolio with more top-quality products and to generating excitement in biscuits and the other categories in which Burton’s now has a presence,” said Field.
Paterson Arran was founded by Isabella and John Paterson in 1895.