Ferrero-backed CTH to acquire part of Fox’s Biscuits from 2 Sisters Food

CTH, a Belgian holding company related to the Ferrero Group, has agreed to acquire a part of British biscuit manufacturer Fox’s Biscuits from Northern Food Grocery Group (NFGG), for £246 million.

NFGG is owned by 2 Sisters Food Group, which is a subsidiary of UK-based Boparan Holdings. It manufactures fine biscuit brands Fox’s, Rocky, and other brands.

The sale includes Fox’s branded and retailer own-brand, which includes M&S, biscuit business. The biscuit business being divested generated sales of around £157 million in the last 12 months.

The brands of Fox’s Biscuits include Rocky Bars, Crunch Creams, Crinkle Creams, Party Rings, Viennese, Chocolatey. The business also makes own-label biscuits and selection boxes for major retail outlets.

Ranjit Singh – President of Boparan Holdings said: “Fox’s Biscuits has always been an attractive brand and as one of only two major independent biscuit makers in the UK, it is a prized asset in this market.

“We have listened to many interested parties over the years, but we have always been clear that Fox’s would only be sold to the right new home, at the right time and for the right value. This sale represents another significant deal for us, underlining our commitment to our business turnaround.”

CTH will take over a couple of biscuit production facilities in Kirkham and Batley in the UK, as part of the deal.

With the acquisition, the Ferrero-related company plans to ramp up its relevance in the rich and fine biscuits category, in addition to its other acquisitions of Biscuits Delacre and Kelsen Group.

The deal is expected to close in the coming months and will be subject to the meeting of customary closing conditions and receipt of regulatory approvals.

Fieldfisher served as legal advisor for CTH for the deal, while Houlihan Lokey was the financial advisor. For 2 Sisters Food Group, the financial adviser for the deal is Rothschild & Co.