Nut manufacturer Trigon Snacks, the maker of UK Planters, will likely be bought out of administration by another domestic player, an analyst says.
The snack player that licenses Planters peanuts in the UK and owns the Big D brand filed for administration late last week , citing cash flow problems as the trigger. Trigon, with its annual turnover of £30m ($47.6m), also imports and supplies own-label nuts for major UK retailers.
The administrators are financial advisory firm Duff & Phelps.
Clive Black, director and head of research at Shore Capital, said the UK nut player will likely spark interest among other British players.
“As a domestic UK player, the synergies and benefits would be best suited to another UK player,” Black told BakeryandSnacks.com.
If not a UK firm, a domestically-orientated firm, he added.
Very few food businesses die…
Black said that the administration is likely to harbor plenty of interest.
“Very few businesses in the food industry die. If there are assets there and products and brands that carry some value, then I’d be amazed if someone doesn’t pick it up,” he said.
He said an international purchase could not be ruled out entirely, but that “the most value would be extracted by a UK firm”.
Intersnack acquisition trail?
European Intersnack Group strengthened its UK presence last year in December when it snapped up United Biscuits’ KP Snacks in a deal rumored to be close to $600m. The buy, Intersnack said, was a move it had been considering for six years .
The Pom-Bear maker plans to fully merge its UK business with KP Snacks next year.
Asked if Intersnack could be considering the purchase of Trigon Snacks to add to its UK presence, Black said that the firm would “definitely be looking”.
Intersnack was unavailable for comment before publication.