Heinz Buys United Biscuits Unit

H.J. Heinz Co. (Pittsburgh) has agreed to purchase UB Frozen and Chilled Foods from British-based United Biscuits Plc in a deal valued at approximately $317 million. The deal is subject to EC regulatory clearance. Subject to this clearance, Heinz said it is anticipated that the deal will be completed by early December.

UB Frozen and Chilled Foods, with sales of $360 million in 1998, is one of the leading companies in the U.K. and Ireland producing frozen desserts and vegetarian/meat-free products, frozen pizzas and frozen value-added potato products, as well as fresh sandwiches.

"This acquisition is a strong addition to our rapidly expanding frozen and chilled business in the U.K., where the attractive value-added frozen food sector is growing by 5% to 10% per annum," said Heinz president and CEO William Johnson. "Heinz is bringing great taste back to the freezer. This, aligned with innovation and new recipes, is making convenient meal solutions one of the hottest trends in the food industry."

UB Frozen and Chilled Foods operates factories in Grimsby, Luton, Fakenham, Okehampton, Westwick and Leamington in the UK and Guadalajara in Spain. It employs around 3,000 people. United Biscuits will focus on its biscuit and snack business following the transaction.

Edited by Scott Hegenbart