Raisio on the snack attack as group snaps up Big Bear

Finnish food firm Raisio bought Big Bear Group, a Leicester-based food company which also owns the Fox’s confectionery brand, for £82m from Investec.

Raisio last year bought Leeds-based Glisten for £20m. It said its latest purchase will allow it to gain a stronger foothold in the UK branded snack and breakfast markets.

Raisio chief executive Matti Rihko said: “With the acquisition of Big Bear Group, Raisio will strengthen its footprint in the markets in Great Britain and Western Europe, and the company’s brand business is growing as planned.

“Big Bear sales is all branded, and it has a very strong market position in interesting and suitable-sized categories.

“Big Bear complements extremely well the earlier acquisition of Glisten and brings the necessary critical mass for the future.”

He added the group has plans for more acquisitions.

In the year to the end of August, Big Bear’s net sales were £56m and earnings before interest, tax, depreciation and amortisation were £11.7m.

Big Bear earns nearly 70 per cent of its sales from breakfast and snack products and 30 per cent from confectionery. The company employs 250 people and has production sites in Leicester and Southall, London.

It was founded in 2003 and owns the brands Honey Monster, Honey Waffles and Sugar Puffs.

Raisio said it funded the all-cash transaction with cash reserves and a loan of £45m.

As a result of the deal Britain becomes the largest market for Raisio’s food business with £118m-£127m annual sales.

Raisio – best known for its Benecol range that claims to help reduce cholesterol – takes its name from its hometown of Raisio in Finland.

It paid a 62 per cent premium to buy and de-list Glisten last year.

Glisten makes cereal, fruit snack bars and health bars and holds the UK rights to make SunMaid raisins and Weightwatchers products. Its brands also include Dormen’s nuts and Fruitus fruit snacks.

The Glisten deal resulted in a new company, 85 per cent owned by Raisio and 15 per cent by Glisten chief executive Paul Simmonds and finance director Robert Davies. Glisten now employs about 600 people across eight manufacturing sites around the UK. It produces and markets over 1,000 products.

“The management team behind Big Bear inspired confidence from the outset in terms of their track records and clearly articulated business plan, and as a result our decision to partner with them was made that much easier,” said Investec director James Stirling.

Investec said it made a 37 per cent return on its original investment.