FDBusiness.com

UK biscuits manufacturerBurton’s Biscuit Company is being acquired by Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada, with the deal expected to close by the end of November. The terms of the transaction are not being disclosed but the price is believed to be in the region of £350 million. Burton’s management will maintain a significant minority stake in the company.

The acquisition ofBurton’s from Canadian Imperial Bank of Commerce and funds managed by affiliates of Apollo Global Management, resulted from a competitive bidding process and is being led by Teachers’ private equity investment division – Teachers’ Private Capital.

Burton’s is the only major biscuit manufacturer in the UK to focus solely on biscuits. Headquartered in St Albans, the company operates manufacturing sites in Blackpool, Edinburgh, Llantarnam, and a chocolate refinery in Moreton, employing over 2,000 people. Recent annual sales were more than £340 million. Burton’s has some of the best known brands in the UK biscuit market including Cadbury Fingers, Maryland Cookies, Jammie Dodgers, Wagon Wheels and Lyons.

Ben Clarke, chief executive of Burton’s, says: “We are delighted that OTPP will shortly acquire Burton’s Biscuit Company. During this process we have met with over 30 different potential buyers and, as significant co-investors going forward, it was critical for the management team to find the right partner. With their combination of extraordinary financial firepower, true partnership approach and global expertise, it is clear to me that OTPP are the ideal partner for us. We are very excited about working with Jo Taylor and his team as we pursue our ambitious plans for growth both in the UK and internationally.”

“We look forward to supporting Burton’s outstanding management team to grow the business in the UK and further into overseas markets. There are also many strategic acquisitions to consider in those territories that can enhance these ambitious growth plans,” says Jo Taylor, head of Teachers’ London office. “With its portfolio of iconic brands,Burtonis set to lead the premium biscuit market for some time to come and use product innovation to appeal to consumers looking for delicious treats and snacks inside and outside the home.”

TPC activities include leading deals on a sole or partnered basis, investing in private equity funds in markets and sectors that it cannot efficiently access directly and co-investing with other like-minded private equity funds. TPC manages a global portfolio valued at approximately $12 billion.