Ontario Teachers' Pension Plan to buy Burton's Biscuits

Greg Gille
18 November 2013

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Ontario Teachers' Pension Plan has agreed to acquire UK-based Burton's Biscuits, which makes confectionery including Wagon Wheels and Jammie Dodgers, via its private equity arm Teachers' Private Capital.

The transaction is expected to close before the end of the month. Burton's' management will maintain a significant minority stake in the company. Rumours of a sale emerged in the summer; Burton's was then expected to command a price tag in the region of £350m.

Credit Suisse was hired in March to oversee a strategic review of the business. Teachers' saw off competition from more than 30 other interested parties in the auction process. Other players in the race were thought to have included private equity houses Apax Partners, Warburg Pincus and Clayton Dubilier & Rice, as well as trade buyer 2 Sisters Food Group.

Previous funding
Duke Street acquired Burton's in 2007 for an estimated £210m from Lion Capital, which had bought the business in 2000 for approximately £434m, according to unquote" data. However, in 2009, a debt-for-equity swap following a debt restructuring of the company left Duke Street with just a minority stake. The Canadian Imperial Bank of Commerce and Apollo Global Management took control of a majority stake in the business.

Company
Burton's was founded in 1935 and is headquartered in St Albans, Hertfordshire. The company employs 2,200 staff and generates a £340m turnover.

Burton's manufactures its owns biscuit brands Jammie Dodgers, Wagon Wheels and Maryland Cookies, and also makes biscuits under licence from Cadbury.

People
Jo Taylor is the head of Teachers' Private Capital's London office. Ben Clarke is CEO of Burton's Biscuits.