Mondelez in talks to buy license for Cadbury biscuits from Burton's Biscuits for $263 mn
25 Jul 2016
US food giant Mondelez International Inc is in talks to buy the license to make Cadbury biscuits from the UK-based Burton's Biscuits Co for £220 million ($263 million), Sky News reported, citing people familiar with the matter.
The report comes a few weeks after US chocolatier Hershey Co rejected a $23 billion takeover bid from Mondelez. (See: US chocolate major Hershey rejects $23-bn takeover bid from Mondelez)
Burton's Biscuits, which makes biscuits such as Cadbury Fingers, is controlled by Canada's Ontario Teachers' Pension Plan, while Mondelez had acquired Cadbury Ltd in a hostile takeover in 2010 for about $19 billion.
Burton's Biscuits, which manufactures Cadbury biscuits under licence from Mondelez, traces its history back to the 19th Century, was rebranded in 2000 after the merger between Burton's Gold Medal Biscuits and the Horizon Biscuit Company.
Its brands include Cadbury Biscuits, Maryland, Jammie Dodgers, Wagon Wheels and Lyons.
With annual revenue of £342 million, Burton's is the second-largest biscuit maker in the UK by sales after United Biscuits.
It employs over 2,200 people in the UK, has three manufacturing facilities in Llantarnam, Blackpool and Edinburgh, a distribution centre in Liverpool and a chocolate refinery in Moreton.
It was earlier been in talks to buy Fox's Biscuits from 2 Sisters Food Group, but no deal has emerged.