Intersnack Said Close to $644 Million Deal for KP Snacks
Intersnack Knabber-Geback GmbH & Co. is close to an agreement to buy United Biscuits’ snacks unit for more than 400 million pounds ($644 million), according to three people familiar with the discussions.
Intersnack and KP Snacks, spun off this year from United Biscuits by owners Blackstone Group LP (BX) and PAI Partners, are discussing the final details and could announce a deal as soon as this week, said the people, who asked not to be identified as the talks are private.
Blackstone and PAI bought United Biscuits for about 1.6 billion pounds in 2006. In 2010, they failed to sell the whole company to Bright Food Group Co., Shanghai’s biggest food and dairy company, and decided to split the snacks and biscuits businesses to facilitate an exit.
United Biscuits was created in 1948 from the merger of two Scottish companies, McVitie & Price and MacFarlane Lang. It competes with food companies including U.S. snackmakers Snyder’s-Lance Inc. and ConAgra Foods Inc. Intersnack, which dates back to 1962 and uses German football star Bastian Schweinsteiger for its advertising, sells bear-shaped chips and fish-shaped salted snacks.
Bidders for the unit also originally included private- equity firms such as Permira Advisers LLP, Warburg Pincus LLC, Clayton Dubilier & Rice LLC and Lion Capital LLP, people familiar with the situation said in September.
Representatives of Blackstone, PAI and Intersnacks declined to comment. A spokesman for United Biscuits was not immediately available for comment.