Blackstone, PAI Look to Exit United Biscuits

Blackstone and PAI Partners, which are looking to exit their investments in United Biscuits, may break up the business, Reuters reported, citing news in the Sunday Times. United Biscuits makes Hula Hoops and Jaffa Cakes. The two private equity firms plan to begin talks about selling United Biscuits at the end of the year.

(Reuters) – United Biscuits could be broken up as its private equity owners seek to offload the business, the Sunday Times reported.

Blackstone and PAI Partners plan to begin talks about selling UB, maker of Hula Hoops and Jaffa Cakes, at the end of the year, and could split its McVities biscuit unit from the KP crisps division to facilitate a deal, the paper said.

Blackstone was not immediately available to comment, and PAI Partners could not be reached.

The buyout firms hoped to raise 2 billion pounds from a sale of UB last year, but interest from potential suitors including China’s Bright Foods, Kelloggs, Kraft and Campbell Soup Co failed to deliver a deal.

($1=0.614 British Pounds)

(Reporting by Myles Neligan; Editing by Mike Nesbit)