United Biscuits to be Split Up
Private equity firms Blackstone Group and PAI Partners are reported to be considering splitting their United Biscuits business into two elements – one centred on biscuits and the other on bagged snacks. Blackstone and PAI offered the entire business for sale with a price tag of about £2 billion in 2010 but to no avail, although at one period they were in exclusive negotiations with Chinese food group Bright Foods.
The biscuits element of United Biscuits accounts for about 75% of sales and includes the McVitie’s brand. The snacks business incorporates brands such as Hula Hoops and McCoy’s crisps.
United Biscuits achieved EBITDA of £230.8 million on revenues of £1.3 billion in 2010 but had net debt of £1.14 billion. The snacks side of United Biscuits is estimated to be worth in the region of £500 million.
