2 Sisters confirms Boparan’s return amid Fox’s Biscuits rumours

By Dan Colombini contact

- Last updated on GMT

Boparan is to take back day-to-day management control of the firm’s core poultry operation in a bid to reduce losses at the business
Boparan is to take back day-to-day management control of the firm’s core poultry operation in a bid to reduce losses at the business

Related tags: Finance, Meat & Seafood

2 Sisters Food Group founder Ranjit Singh Boparan is returning as managing director, the company has confirmed, while refusing to verify speculation that its Fox’s Biscuits business would be auctioned early next year.

Boparan will replace departing managing director Andrew McInnes and will assume the role heading up the business alongside Ronald Kers, Boparan Holdings’ president and group chief executive.

The division’s commercial director, Dan Howell, is also departing.

Frustration

The move is thought to have been driven by Boparan’s growing frustration over the performance of the poultry business, which supplies the UK’s biggest supermarket chains.

The business has posted very encouraging financial results and this is set to continue as we realise our turnaround plan,”​ a spokesperson said.

However, in order to accelerate this plan, our senior leaders have decided to take a more hands-on approach.

“Ranjit and Ronald have one clear goal in mind, which is to continue to deliver improved results for the business.

“Already, our changes have seen improved performance and we look forward to delivering our transformation plan for all stakeholders.”

Fox's Biscuits

Reports surfaced at the end of last week that the company was preparing to launch a formal auction of Fox’s Biscuits, one of the best-known biscuit brands in the sector, in the first quarter of 2020. According to reports by Sky News, the auction would be overseen by bankers Rothschild. However, a spokesman for 2 Sisters Food Group refused to confirm or deny the claims, telling Food Manufacture​: "We just don't comment on market rumour and speculation."

In September, private equity firm Towerbrook reportedly set its sights on acquiring the brand as part of a mega merger​ to create a new European biscuit business. The firm previously received an offer for the business in 2017​. 

Turnaround plan

As previously reported by Food Manufacture​ in June, the firm was starting to see the fruits from parent company Boparan Holdings’ turnaround plan, as it reported its first like-for-like quarterly pre-tax profit for two-and-a-half years.

Speculation surrounding the sale of Fox’s follows a string of divestments by the firm as it seeks to streamline its core operations and continue to improve performance.

The latest of these saw Valeo Food Group acquire Christmas pudding manufacturer Matthew Walker​ in a deal worth £67m in October.

 

 

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