Norwich-based Kettle Foods brands sale claims 'speculation'

Kettle Foods factory.

DAVID BALE
15 December 2009 10:00



Norwich-based Kettle Foods - which makes Kettle Chips - today said claims it was up for auction were “speculation”.

Respected US paper the Wall Street Journal reported that Kettle's owner, London-based private-equity firm Lion Capital LLP, is seeking about 10 times its annual earnings, or around $700m.

It claimed that Lion Capital, which acquired Kettle in 2006, recently hired boutique investment bank Rothschild to conduct an auction.

More than 370 people work at Kettle's headquarters in Barnard Road, Bowthorpe.

It comes a month after the Evening News revealed that speculation surrounding Kettle Foods had increased with Lion Capital believed to be talking to potential buyers with snack food producer United Biscuits said to among the interested parties.

A spokeswoman for Kettle Foods in Norwich said today: “Both the UK and the US businesses are doing well.

“There is always interest in businesses doing well and we have a great brand that a number of people would love to own.

“Lion Capital is frequently approached about selling Kettle Foods and so rumours of a sale, as reported recently in The Wall Street Journal, are not uncommon.

“If Lion Capital has decided it is time to 'test the water' for potential buyers that wouldn't be a surprise because both businesses are doing well, however that's a very different thing to being sold, particularly in this economic climate.”

According to The Wall Street Journal, among those looking at Kettle was PepsiCo Inc's Frito Lay unit, and pretzel maker Snyder's of Hanover Inc.

Kettle Foods North America President Tim Fallon issued the following comment regarding the Wall Street Journal article: “We have a great brand and a loyal, passionate following that's helped fuel strong growth in the marketplace.

“Our success frequently attracts interested parties. Our focus is our unwavering passion for making the best tasting, all-natural potato chips in the world.”

Kettle Foods' US operations is based in Salem, Oregon and has been around since 1978.

Kettle Foods offers a wide variety of all natural snack foods including more than 20 flavours and four varieties of potato chip offerings, eight flavours or organic tortilla chips and a variety of nut butters and trail mixes.

Kettle was bought by Lion for about £170m in 2006. Its latest set of accounts showed that it had a good 2008 with pre-tax profits up by about £2.5m to £10.9m and turnover up £10m to £59m. The accounts for the year to September 2008 also showed that the workforce at Kettle's Norwich headquarters rose from 350 to 371.

Have you got a business story for the Evening News? Ring reporter David Bale on 01603 772427 or email david.bale2@archant.co.uk.

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