Danone confirms plan to sell Irish Biscuits

FRENCH food and dairy group Danone yesterday confirmed it is planning to sell its Irish Biscuits subsidiary.

The Irish company said sales talks were at an advanced stage. A further announcement will be made when they have concluded, it said in a statement.

Irish Biscuits, the company behind the Jacobs brand, employs more than 400 people in Tallaght in Dublin. In 2001, the company cut staff numbers in Tallaght by 100 through voluntary redundancy and early retirement.

It is believed those interested in buying the business include United Biscuits and private equity group Hicks, Muse, Tate and Furst.

The move was not a big surprise as the company’s first-half results included a €100 million charge related to the sale of the Irish and British biscuit operations.

Danone reported net profits of €436m, up 8% on the same period a year earlier. The group specialises in dairy products, bottled waters and biscuits.

Its current biscuit operation comprise 36 factories in Europe. Danone said it aims to develop large capacity factories with production of more than 50,000 tonnes, plus a network of smaller, specialised plants that will hone efficiency.