Lion adds to snack empire with Kettle deal

Potato chip maker Kettle Foods was today bought by Lion Capital as part of a move to create the UK’s second-biggest snack business.

US-based Kettle, which has a factory in Norwich, joins a host of Lion brands including Weetabix, Jimmy Choo shoes, Orangina and Wagamama noodle bars.

It is thought the deal values the business at between $280m (€217.4m) and $320m (€248.5m), although details of the package have not been confirmed.

Kettle, which makes gourmet-style crisps, nuts and tortilla chips, is based in Oregon and is expected to generate annual sales of $150m (€116.5m).

Cameron Healy, the founder of Kettle Foods, said: “We’ve found an investment partner in Lion Capital that brings deep respect for our brand, confidence in our business plan and the expertise to help deliver on our brand promise to consumers around the globe.

“Our fans will see no changes in the products they love. They’ll just be able to find us more easily as we continue to broaden our distribution.”

The deal will help Lion achieve its goal of becoming the UK’s second-biggest snack company behind PepsiCo, which owns Tropicana, Quaker Oats and Gatorade.

The company is also said to be interested in the KP Snacks arm of United Biscuits, which it is reported to be eyeing up in a joint bid with Premier Foods.

Lyndon Lea, founding partner at Lion Capital, said: “As a leader in premium and natural segments of the snacks market, Kettle is capitalising on consumer trends towards healthier eating through product innovation and increased market penetration.”

Kettle Foods was established in Oregon in 1978. Nine years later Mr Healy discovered the British love for the potato chip while on a trip in Europe.

A few months later an arm of Kettle Foods was established in Norwich in a corner of the Tucker’s crisp-making factory before it moved to its own site in the city in 1992.