Nutella maker Ferrero is snapping up the British maker of Jammie Dodgers and Wagon Wheels biscuits for an undisclosed sum to expand its cookies business, the Italian company has announced.
Ferrero, which also makes Ferrero Rocher and Kinder chocolates, said it was buying Burton's Biscuit Company from Ontario Teachers' Pension Plan Board through an associated company.
In 2013, Ontario Teachers' acquired Burton’s and helped the business grow through continued investment across the branded, retailer brand and third-party global brand portfolios, in addition to organic initiatives and bolt-on acquisitions.
'As part of the transaction, the Ferrero-related company will take over the six production facilities in United Kingdom, which are based in Blackpool, Dorset, Edinburgh, Livingston, Llantarnam and Isle of Arran,' Ferrero said in a statement.
'Through this acquisition, the Ferrero-related Company expects to enlarge the offer of products in the sweet biscuits market, further to the previous acquisitions of Biscuits Delacre, Kelsen Group and Fox’s.'
Burton's employs about 2,000 people across six manufacturing sites in the United Kingdom.
It posted sales of more than £275 million during the last 12 months, Ferrero said in a statement.
Ferrero said CTH, a holding company related to the Ferrero Group, would take over Burton's six production facilities and planned to expand further in the sweet biscuits market. It previously bought Biscuits Delacre, Kelsen Gorup and Fox's.
Davis Polk & Wardwell, LMS Legal LLP (competition law advisors) and Houlihan Lokey served as legal and financial advisors to CTH.
Ontario Teachers’ is an independent organisation headquartered in Toronto, with regional offices in Hong Kong and Singapore in the Asia-Pacific region. Its Europe, Middle East and Africa office is based in London.
Burton’s is headquartered in St. Albans, UK, and operates manufacturing sites in Blackpool, Edinburgh, Llantarnam, Livingston, Dorset and Isle of Arran.
In the 2019/20 financial year, the Italian activities of the Ferrero Group generated an operating profit of €223.3 million, up €1.1 million on the previous year.