Private equity firm is strong favourite to buy KP

KP Snacks – which makes Hula Hoops, KP Nuts and Skips – could be sold to a Russian-British private equity firm in a £450m auction, according to reports.

Pamplona Capital Management has emerged as one of the favourites to win the UK’s second-largest branded snack company, which employs 1,500 staff, which includes plants on Teesside and in Rotherham, the Sunday Telegraph said.

Rivals include Permira, CD&R, TDR, CapVest and German family-run Intersnack, which are all expected to submit bids before tomorrow’s offer deadline.

Hide Ad
Hide Ad

KP Snacks is the junior partner within its parent group, United Biscuits, ultimately owned by private equity firms Blackstone and PAI. KP accounts for 20 per cent of the total group, which is dominated by brands, such as Jaffa Cakes and Penguins.

A 2010 sale of the whole of United Biscuits to China’s Bright Food fell through, leading to a break-up of the company.

The high private-equity interest in the auction is based on KP’s growth potential.