Ontario Teachers' Pension Plan (OTPP) has announced an agreement to buy a large biscuit maker in the UK.

The deal to acquire Burton's Biscuit Company is expected to be completed before the end of November.

Burton's management will maintain a significant minority stake in the company, however the terms of the transaction are not being disclosed.

The acquisition of Burton's from Canadian Imperial Bank of Commerce and the funds managed by affiliates of Apollo Global Management after a competitive bidding process and is being led by OTPP's private equity investment division, Teachers' Private Capital (TPC).

The biscuit company, which produces brands such as Cadbury Fingers, Maryland Cookies, Jammie Dodgers, and Wagon Wheels, employs over 2,000 people around the UK and recent annual sales were more than £340m.

Jo Taylor, head of Teachers' London office, said: "We look forward to supporting Burton's outstanding management team to grow the business in the UK and further into overseas markets. There are also many strategic acquisitions to consider in those territories that can enhance these ambitious growth plans.

"With its portfolio of iconic brands, Burton is set to lead the premium biscuit market for some time to come and use product innovation to appeal to consumers looking for delicious treats and snacks inside and outside the home."

Ben Clarke, Burton's CEO, said: "We are delighted that OTPP will shortly acquire Burton's Biscuit Company. During this process we have met with over 30 different potential buyers and, as significant co-investors going forward, it was critical for the management team to find the right partner.

"With their combination of extraordinary financial firepower, true partnership approach and global expertise, it is clear to me that OTPP are the ideal partner for us."

First published 21.11.2013

monique_simpson@wilmington.co.uk