LDC, the private equity arm of Lloyds Bank, has sold Hill Biscuits to Cerealto UK. This move follows a period of significant expansion and innovation for the biscuit maker.
Since 2017, LDC invested in new technology and enhancements, doubling Hill Biscuits’ revenue to over £40 million by 2024. This acquisition marks a major milestone for the long-established biscuit manufacturer.
LDC’s Investment in Hill Biscuits
LDC, the private equity division of Lloyds Bank, first invested in Hill Biscuits in 2017. The investment aimed to boost manufacturing efficiency and overall capacity.
Over the span of seven years, LDC introduced new technology and innovations. This resulted in doubling the company’s revenue to over £40 million by 2024.
The Sale to Cerealto UK
Hill Biscuits has been sold to Cerealto UK, part of a larger portfolio under Davidson Kempner Capital Management and Afendis Capital Management. Cerealto UK is the largest producer of biscuits, breakfast cereals, snacks, and pasta in Europe.
The financial details of this transaction have not been disclosed by the parties involved. This acquisition marks a significant milestone for Hill Biscuits.
A Rich History
Hill Biscuits was founded in 1855 by Sarah and John Hill. It started as a small family-run shop.
By 1893, the business expanded and moved to Tudno Mill in Ashton-under-Lyne, Manchester. This location remains operational as Hill’s bakery today.
Currently, Hill Biscuits employs 350 people and is one of the UK’s largest and oldest biscuit manufacturers. It produces hundreds of millions of biscuits annually.
Impact on Business
The investment by LDC facilitated a 44% increase in sales last year alone. Hill Biscuits saw its revenue soar to more than £40 million in 2024.
The last set of accounts for the year ending 2022 recorded sales of £26 million and an EBITDA of £536,178.
Leadership and Growth
Frank Bird, the CEO of Hill Biscuits, expressed his excitement about the acquisition. He stated, “This acquisition marks a pivotal moment in our journey to become the leading provider of everyday essential biscuits.”
Frank Bird also extended his gratitude to LDC for their support since 2017. “With their support, we have built a dedicated leadership team that has significantly grown our business,” he added.
Future Prospects
Looking forward, Hill Biscuits aims to partner with Cerealto UK to further accelerate growth and innovation.
The company is set to celebrate its 170th anniversary next year, making it one of the most enduring names in the biscuit industry.
Rob Powell, Partner at LDC, remarked that they were proud to have supported the business and wished the team success in future ventures.
Advisors and Key Figures
LDC and Hill Biscuits were advised by Clearwater’s Richard O’Donnell, Joshua Gorman, and James Croxen. Legal advice was provided by Addleshaw Goddard’s team consisting of Paul Medlicott, George Danczak, and Dan Conway.
The executive team at Hill Biscuits includes Steve Greenhalgh, Tracey Meadows, Frank Bird, Brendon Ward-Banner, and Simon Worth.
Conclusion
The acquisition of Hill Biscuits by Cerealto UK marks a new chapter in its long history. Enhanced by past investments and with trusted new ownership, the future looks promising for this historic biscuit maker.
The acquisition of Hill Biscuits by Cerealto UK signifies a new chapter for the historic company. LDC’s investments have significantly enhanced Hill Biscuits’ capabilities, paving the way for future growth. With Cerealto UK’s leadership, the company is poised to achieve new milestones in the coming years.