Private equity-owned Burton’s Biscuit up for sale

The management team at UK-headquartered Burton’s Biscuit Company has put the company up for sale, a deal which could fetch between £300m and £350m.

Burton’s Biscuit, which is the second biggest biscuit manufacturer in the UK by sales, is owned by the Canadian Imperial Bank of Commerce (CIBC) and the private equity firms Apollo Global Management and Duke Street Capital.

Duke Street Capital, which launched a debt for equity swap in 2009, holds a minority stake in the company.

Burton’s Biscuit employs more than 2,000 people across its manufacturing sites in South Wales, Edinburgh and Blackpool in the UK.

In 2012, Burton’s reported revenues of £333m with £34.6m in earnings before interest, tax, depreciation and amortisation (EBITDA) and £10m in annual pre-tax profits.

The latest move comes after the company appointed Credit Suisse in March this year, to conduct a strategic review of the business.

A source familiar with the situation was quoted by the Financial Times as saying, "Management have been open that they want to stay involved."

"They are a year into a four-year plan. It would be logical for a buyer to want to keep them on board," the source added.

A Burton’s spokesman has confirmed that a process for the possible sale of Burton’s Biscuit Company will shortly commence.

"There is no guarantee a sale will take place, and we will provide an update in due course," he added.

"It is very much business as usual. The management team remains committed to leading the company and is focused on delivering its strategy to grow the business."

The potential sale of the company is likely to draw interest from a number of private equity firms.

Burton’s was formed by the merger of Horizon Biscuit and Burton’s Gold Medal Biscuits in October 2000.

The merger was led by the US private equity firm HM Capital Partners after it acquired Burton’s from Associated British Foods, which acquired the company from the Burton family in 1949.

Burton’s Biscuits is a manufacturer of leading brands including Wagon Wheels, Cadbury’s Fingers and Jammie Dodgers as well as Cadbury’s biscuits under a licensing agreement, including Cadbury Fingers and Cadbury Animals, along with the Maryland cookie brand.