Jacob Fruitfield eyes up big British biscuit manufacturer

Jacob Fruitfield Food Group, a Tallaght-based company headed by Michael Carey, is vying to acquire Burton's Foods, the UK's second-biggest biscuit company, in a £200 million (€297 million) deal. Ciarán Hancockreports.

Burton's brands include Wagon Wheels and Jammie Dodger biscuits.

It is understood Jacob Fruitfield is up against a private equity group called Duke Street Capital, which tried to buy Burton's seven years ago. A decision is expected shortly.

United Biscuits, the UK's biggest biscuit-maker, and Northern Foods, a quoted company, have already dropped out of the race.

This is the latest leg in Mr Carey's ambitious plan to expand the Jacob Fruitfield portfolio of food brands. He tried to acquire Tayto from C&C last year but lost out to Ray Coyle's Largo Foods.

No comment was available from the Irish food group, which is backed by Lioncourt Capital, whose investors include Michael Tunney and David Andrews.

Burton's is owned by HM Capital, a private equity group in the United States. HM acquired the company in late 2000, paying £130 million to Associated British Foods for the business.

Latest accounts for the UK biscuit manufacturer show it earned profits of £4 million on turnover of £287 million in the year to the end of December 2005.

Burton's revenues dwarf those of Jacob Fruitfield. In the 12 months to the end of December 2005, the Irish food group doubled its revenues to €88.9 million.

Its operating profit, however, fell from €6.6 million to €4.9 million. When interest charges and tax are stripped out, the company was left with a profit of €441,000.

Jacob Fruitfield, however, is backed by significant property assets in south Dublin. Its brands include Jacob's Cream Crackers and Fig Rolls, Silvermints and Yorkshire Toffees, and Little Chip and Old Time marmalades.

Mr Carey founded the company in July 2004 and initially acquired the Fruitfield business from Nestlé. He later bought W&R Jacob from Danone and added the Real Irish Food Company in 2005.

Burton's also manufacturers brands under licence from Cadbury and produces Maryland Cookies. The company has four manufacturing plants in the UK at Edinburgh, south Wales, Merseyside and Blackpool.

Burton's does not have any manufacturing operations in Ireland. Its products are distributed here by Flanagan's.

The sale process is being handled by Stamford Partners, an investment bank.