Duke Street Capital (“DSC”) has acquired Burton’s Foods (“Burton’s”) for an undisclosed sum.  Burton’s is a leading branded and own label supplier of quality biscuits and snacks and the second largest biscuits manufacturer in the UK. 

Burton’s owns some of the best loved biscuit brands in the UK such as Maryland Cookies, Jammie Dodgers, and Wagon Wheels.  In addition, Burton’s bakes and sells under license a wide range of Cadbury chocolate biscuits, including Cadbury Fingers and Cadbury Chocolate Digestives.  Burton’s brands all occupy strong positions, largely No.1 or No.2 in the key market segments in which they participate.

The biscuits market is the third largest grocery category in the UK.  Burton’s has successfully responded to recent trends in the market such as convenience, health and indulgence, via both new product launches and extensions of its iconic brands into new flavours and formats.  It has recently launched an exciting range of Bertolli savoury snacks under license with Unilever.  The company is well placed to continue this growth organically, through further acquisitions, and via targeted new product development.

Burton’s was founded in the 1930s under the name of Burton’s Gold Medal Biscuits and was acquired by Associated British Foods in 1949.  The company was sold to Hicks, Muse, Tate and Furst in 2000 and subsequently merged with the Horizon Biscuit Company Ltd.  Burton’s now serves all the major grocery retailers in the UK with branded and own label products and has significant exports to Scandinavia, France and the USA.

DSC has successfully invested in several businesses in the consumer sector and has particular experience in the food industry. This deal follows DSC’s recent investments in various businesses in the chilled convenience ‘Food to Go’ sector.  Working closely with a very capable management team and with the support of its experienced Operating Partners, DSC is well placed to provide Burton’s with strategic and financial support as it enters its next phase of development.

DSC was advised by McQueen Limited, SJ Berwin and PWC Transaction Services and the management team was advised by law firm DWF and Deloitte & Touche. CIBC’s European Leveraged Finance team are providing the debt facilities for the acquisition.

Colin Curvey, Partner, DSC comments:

“We are delighted with the acquisition of Burton’s Foods.  Burton’s makes some of the best known biscuits on the market and is in a great position to continue its recent growth.  The impressive management team has positioned the business to respond to the key consumer trends in the biscuit and snacking market.   We are very excited about working with Burton’s Foods and supporting such a capable and proven management team and its ambitious plans.”

Paul Kitchener, CEO Burton’s comments:

“Burton’s already has a leading position in its market with its portfolio of strong brands.  We look forward to working with Duke Street and are sure that with its financial and operational support, the business will be well placed to accelerate its growth plans and further advance its position in the broader snacking market.”

Enquiries
Clive Baker 020 7484 8800