Northern Foods agrees to Boparan takeover

26 January 2011 – Food manufacturer Northern Foods has agreed to be taken over by businessman Ranjit Boparan in a deal valuing the business at £342 million.

The maker of Fox’s biscuits is recommending that shareholders back a bid of 73 pence per share by Boparan and said it had withdrawn its support for a takeover by Irish food manufacturer Greencore Group. “This attractive cash offer provides shareholders with an immediate premium to the value of Northern Foods within the proposed merger with Greencore,” Northern Foods chairman Anthony Hobson said in a statement.

The combined group will have annual sales of £2 billion, the two parties said in a statement. It will look to build its relationships with major food retailers, they added. As well as its branded products, Northern Foods supplies own label food to major British retailers, including Marks & Spencer and Tesco.