Intersnack to acquire United Biscuits’ snack unit

German snack company Intersnack has entered into an agreement to acquire UK-based United Biscuits’ (UB) snacks business, KP Snacks, from its private equity owners Blackstone and PAI Partners.

Although the financial details of the transaction have not been disclosed, the deal is estimated to be valued at more than £400m.

The acquisition will enable Intersnack to gain control of KP Snacks’ brands such as McCoy’s, Hula Hoops, KP Nuts, Nik Naks, Space Raiders, Wheat Crunchies, Skips, Discos, Phileas Fogg, Roysters, Choc Dips, Brannigans, Frisps, KP Crisps, KP Mini Chips and Cheese Footballs.

Intersnack will also acquire KP Snacks’ UK manufacturing facilities and its head office.

UB, however, will continue to own its baked bagged snack brands, including Mini Cheddars and Twiglets, which are manufactured at its biscuit factories.

The transaction is likely to be completed in the first quarter of 2013.

Intersnack executive chairman Maarten Leerdam said that KP Snacks complements Intersnack’s businesses across Europe.

"Intersnack is a strong believer in the power of iconic, local hero brands, and we aim to leverage these strengths for further expansion," Leerdam added.

UB non executive chairman David Fish said, "This exciting deal ensures that the KP brands continue as part of a major European Snacks business, which gives them the scale and support needed in a competitive market place."

"It also allows UB to concentrate its attention solely on continuing to develop and grow its baked biscuit and snack product range," he added.

KP Snacks has four factories in the UK, with a workforce of around 1,500, and has annual revenues of £280m.

Privately-owned Intersnack, which currently has a workforce of 6,500, produces branded and non-branded snacks.

Intersnack’s UK arm produces savoury snacks under brands such as Pom-Bear, Penn State and Percy Dalton’s.

This divestment of KP Snacks comes after Blackstone and PAI, which bought UB for £1.6bn in 2006, failed in their attempt to sell the whole company to Bright Foods in July 2010.

In August 2012, Blackstone and PAI completed the separation of KP Snacks business from the rest of UB’s operations, to facilitate the sale, and hired Swiss financial services company Credit Suisse to handle the divestment.