UK: Kellogg, Weetabix and ABF vye to buy Dorset Cereals
Three of the UK’s largest breakfast product manufacturers are battling to take over upmarket cereal producer Dorset Cereals. Kellogg, Weetabix, and Jordan’s Cereals – owned by Associated British Foods (ABF) – have all tabled offers to buy Dorset, the sale value of which is being estimated to be in excess of £50 million ($83 million).
They are among a handful of bidders, with private equity firms also in the running.
Dorset Cereals is owned by Wellness Foods, which is financed by Irish horse racing tycoons John Magnier and JP McManus via a private investment vehicle Lydian Capital.
The presence of Weetabix in the auction could see another British food brand changing into Chinese hands. In 2011 a majority stake in Weetabix was sold to Bright Food, with the equity firm Lion Capital holding a large minority stake.
Between them, Kellogg and Weetabix and Jordan’s have the majority share of the UK’s £1.2bn ($2.0 billion) a year breakfast cereal market.
Source: Sky News