A Belgian company, controlled by Ferrero Rocher owner, Giovanni Ferrero, has announced it has entered into a definitive agreement to acquire Burton’s Biscuit Company, makers of Jammie Dodgers.
Employing around 2,000 people across six UK manufacturing locations, Burton’s brands include not only Jammie Dodgers but also Maryland Cookies, Wagon Wheels, Paterson’s and Thomas Fudge’s. The company, which dates back to 1935, generated sales of more than £275 million in the last year.
As part of the deal, the new business will take over the UK production facilities, based in Blackpool, Dorset, Edinburgh, Livingston, Llantarnam and Isle of Arran.
The acquiring company expects to enlarge the offer of products in the sweet biscuit market, following previous acquisitions of Biscuits Delacre, Kelsen Group and Fox’s.
Mark Lynch, partner at corporate finance house Oghma Partners, commented on the deal: “The acquisition of Burton’s makes sense in terms of strengthening the existing UK operations by combining Burton’s and the earlier purchased Fox’s together. It provides greater scale, product breadth and potential savings in back office, manufacturing and marketing.
“Burton’s lacked a premium biscuit offer and Fox’s provides that whilst, arguably, the Fox’s assets bought by Ferrero lacked value brands like Jammie Dodgers as well as super premium products like those made by Thomas Fudge’s.
“For Ferrero they have cemented their UK presence and offer up a stronger competitor to market leader Pladis. In addition a low interest rate environment makes this an attractive time to engage in acquisition opportunities. Ferrero can bring their global R&D, manufacturing, purchasing and marketing skills to the UK operations as appropriate.”
