Kraft Foods has secured the acquisition of a number of biscuit brands and trading rights from United Biscuits (UB) for US$1.07bn.
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Kraft has purchased the Spanish and Portuguese operations of UB and bought back the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa.
The Iberian part of the deal includes local biscuit brands Fontaneda, Filipinos, Artiach, Chiquilin and Triunfo, dry dessert business Royal, and UB’s Iberian canned meat, tomato, and fruit juice businesses Apis and Fruco. In total, Kraft will take on seven UB manufacturing facilities and 1,300 employees in Spain and Portugal.
Kraft has added that when the transaction has closed, which is expected to happen in the third quarter, it will no longer have any interest in UB or any of its affiliates.
Kraft International Commercial president Hugh Roberts said: “We are delighted to be significantly expanding the global scope of our Nabisco biscuit brands by recovering the licenses UB has held since 2000. With our broader portfolio of strong trademarks, we look to achieve even faster growth in this key category.”
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By GlobalDataThe acquisition is being financed by approximately $548m of debt issued by the acquired business immediately prior to the acquisition, as well as $522m of value for the redemption of Kraft’s outstanding investment in UB, primarily deep discount securities.
