2 Sisters Food Group is reportedly negotiating to sell its Fox’s Biscuits unit to Burton’s Biscuits, which is owned by Ontario Teachers’ Pension Plan.
The sale, which is being advised by Rothschild could bring the valuation of 2 Sisters Food Group to $486m, according to sources quoted by Reuters.
The sources familiar to the development said that there is no certainty that the negotiation will result a deal.
Burton's, which is the manufacturer of Maryland cookies, Wagon Wheels and Jammie Dodgers, has been considered as a prospective buyer for Fox's Biscuits, more so after it lost the United Biscuits bid to Turkish food group Yildiz Holding, which bought the business for $2.85bn in 2014, reported Reuters.
2 Sisters Food Group had acquired the Fox's Biscuits business in 2011 when it took over UK group Northern Foods, reported just-food.com.
Since 2009, Burton's Biscuit Company has been involved in transforming its portfolio and profitability. The company was acquired by Ontario Teachers' Pension Plan in November 2013.
Recently, 2 Sisters Food Group re-opened the factory, which was previously owned by ready meals food business S&A Foods in Derby, the UK.
2 Sisters had acquired the location in December 2015 after the Asian ready meals business fell into administration when Asda cancelled its supply contract for frozen ready meals. This led to around 300 job losses.
The move was announced as part of company's plan to improve its ready meals division - in 2015, the company announced plans to invest £55m in the segment, to renovate its Pennine Foods factory, which produces soups, ready meals, and sauces for Marks & Spencer.
2 Sisters also had plans to expand production capacity at three other facilities in South Wales, Carlisle and Grimsby. In the recent past, the company has also made efforts to improve its relationship with retailers such as Aldi and Lidl.
The companies have collaborated on several supply chain projects to improve upon efficiency, capability and bring about associative change.
In October last year, the company also announced an investment worth £150m into its poultry unit. In this regard, 2 Sisters CEO Ranjit Boparan had said that the investment in poultry business was aimed at providing innovative products and better value to consumers.
