Kraft Foods acquire United Biscuits business in Iberia

Kraft Foods Inc. announced that it will acquire the Spanish and Portuguese operations of the British company United Biscuits plc (UB), London. The agreement also returns to Kraft the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa. In addition to the Nabisco trademarks, the UB operations in Spain and Portugal include leading local biscuit brands, such as Fontaneda, Filipinos, Artiach, Chiquilin and Triunfo, as well as the leading dry dessert business in Iberia, Royal. The deal also includes UB s Iberian canned meat, tomato, and fruit juice businesses under the well-known brand names Apis and Fruco as well as all seven UB manufacturing facilities and 1,300 employees in Iberia. Together, these Iberian-based businesses generated net revenues of approximately €453 m in 2005.
Commenting on Kraft s acquisition of UB s Spanish and Portuguese operations, Joachim Krawczyk, Group Vice President & President, Kraft EU Region, said, "This deal makes us the Iberian category leader in biscuits and dry desserts. Through this acquisition, we are getting both great brands and great people that we are very happy to have joining the Kraft family."
The acquisition of UB Iberia and the Nabisco trademark rights for the identified markets is valued at €1.121 bn, including Kraft s assumption of some debt and the return of its 25% in UB back to the company. The transaction is expected to close in the third quarter. After closing, Kraft Foods will no longer have any interest in United Biscuits or any of its affiliates.