McVities, Penguin and Jaffa Cakes could be the latest British brands to fall under Chinese ownership as private equity firm Hony Capital weighs up a bid for United Biscuits.
If Hony, owned by the giant investment company behind Lenovo computers, pitches in with an offer, it would be the second attempted Chinese takeover bid for United Biscuits in four years. In 2010, talks foundered with China’s Bright Food Group.
United Biscuits is currently owned by private equity firms Blackstone and PAI, who bought it for £1.6 billion in 2006. The most recent accounts for United Biscuits Topco show that it made operating profits of £130.8 million in 2012 against £134.6 million the previous year on flat revenues of £1.05 billion. However, after paying £95.1 million to service its large debts, it made a profit on continuing operations of £45.7 million.
The accounts described it as having “continued difficult market conditions.”
There are just under 8,000 staff and the company’s brands are sold in more than 100 countries. The current owners are working with banks including JPMorgan Chase & Co as they consider their options, one source close to the situation said.
United Biscuits, which sold its KP snacks unit last year for reportedly more than £400 million, declined to comment.
