British Foods gets a $1.35bn lift

The owner of Twinings tea and Mazola cooking oil Associated British Foods has agreed to buy Burns Philp & Co’s bakery and US spices units for $1.35 billion in cash to become one of the world’s biggest makers of bread ingredients.

The purchase will give London-based ABF businesses with $708m in annual sales and products ranging from Spice Islands garlic powder to bakers’ yeast, chief executive Peter Jackson said in an interview. Burns Philp, based in Sydney, plans to close the sale by September 30. ABF shares rose 6.7% in London.