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| United Biscuits bought for £1.6bn | United Biscuits bought for £1.6bn |
| (40 minutes later) | |
| The owner of the McVitie's and Jacob's brands, United Biscuits, has been bought in a deal worth £1.6bn ($3bn). | The owner of the McVitie's and Jacob's brands, United Biscuits, has been bought in a deal worth £1.6bn ($3bn). |
| US and European private equity groups Blackstone and PAI Partners have agreed to buy the company, and the deal is expected to go through by December. | US and European private equity groups Blackstone and PAI Partners have agreed to buy the company, and the deal is expected to go through by December. |
| United Biscuits, which was founded in 1948, employs more than 9,000 people, of whom about 7,500 work in the UK. | United Biscuits, which was founded in 1948, employs more than 9,000 people, of whom about 7,500 work in the UK. |
| Other popular brands owned by United Biscuits include Jaffa Cakes, Penguin, Twiglets and Hula Hoops. | Other popular brands owned by United Biscuits include Jaffa Cakes, Penguin, Twiglets and Hula Hoops. |
| The purchase will be financed through a combination of equity contributed equally by Blackstone and PAI, as well as debt financing, the buyers said. | The purchase will be financed through a combination of equity contributed equally by Blackstone and PAI, as well as debt financing, the buyers said. |
| "Blackstone has a successful track record of owning and developing companies such as United Biscuits and I believe the company will benefit from their involvement," said United Biscuits chief executive Malcolm Ritchie said. | "Blackstone has a successful track record of owning and developing companies such as United Biscuits and I believe the company will benefit from their involvement," said United Biscuits chief executive Malcolm Ritchie said. |
| UNITED BISCUITS BRANDS PenguinHula HoopsKP NutsJaffa CakesSkipsMini Cheddars | UNITED BISCUITS BRANDS PenguinHula HoopsKP NutsJaffa CakesSkipsMini Cheddars |
| He added that United Biscuits was "delighted" one of its existing shareholders PAI - which has offices in Paris, London, Madrid and Milan - had decided to play a greater part in the business. | He added that United Biscuits was "delighted" one of its existing shareholders PAI - which has offices in Paris, London, Madrid and Milan - had decided to play a greater part in the business. |
| But unions were less happy, warning that a £320m deficit in the firm's pension fund was a key concern. | But unions were less happy, warning that a £320m deficit in the firm's pension fund was a key concern. |
| "Private equity deals are invariably struck for quick returns for shareholders," said Brian Revell of the T&G, which has some 900 members at United Biscuits. | "Private equity deals are invariably struck for quick returns for shareholders," said Brian Revell of the T&G, which has some 900 members at United Biscuits. |
| "That's why we believe there should be a cash injection to show this is not a quick-fix deal but a longer term investment." | |
| Production shift | Production shift |
| The news came hours after United Biscuits announced it would be shifting production of its Nik Naks and Wheat Crunchies brands. | The news came hours after United Biscuits announced it would be shifting production of its Nik Naks and Wheat Crunchies brands. |
| United Biscuits bought the brands from Golden Wonder in February and the snacks are currently made under contract at a factory in Scunthorpe. | United Biscuits bought the brands from Golden Wonder in February and the snacks are currently made under contract at a factory in Scunthorpe. |
| It wants to make the products at its own factories in Teesside and Ashby-de-la-Zouch, Leicestershire. The move is expected to be completed by next year. | It wants to make the products at its own factories in Teesside and Ashby-de-la-Zouch, Leicestershire. The move is expected to be completed by next year. |
| Bosses at the Golden Wonder factory - which currently employs 395 people - did not expect any job losses as a result of the switch. | Bosses at the Golden Wonder factory - which currently employs 395 people - did not expect any job losses as a result of the switch. |