AB Foods picks up Jordans stake

The founding family of British cereals firm Jordans has sold a stake in the business to Kingsmill owner Associated British Foods, it emerged today.

Brothers Bill and David Jordan will retain an 80% holding in the company after the sale of the 20% stake for an undisclosed sum.

AB Foods described Jordans as a “wonderful brand” and said the business was well positioned to benefit from the nation’s healthy eating trends.

Jordans products include breakfast cereal bars, muesli and oat porridge. It has three manufacturing sites and a head office at Biggleswade, Bedfordshire.

The family-owned firm said it planned to retain control of the majority share as the business expands under AB Foods part-ownership.

With the Jordans mill based in Biggleswade, in Bedfordshire’s Ivel Valley, since 1855, Bill and David Jordan set up Jordans Cereals in 1971 when they launched the Original Crunchy breakfast cereal.

Now operating in 47 countries, Jordans reported sales of £81m for the year ended February and gross assets of £40m as of February 28 2007.

AB Foods, whose own brands include Twinings, Ovaltine and Silver Spoon as well as clothing chain Primark, said its deal with Jordans would “ensure the further development” of the family-owned company.

AB Foods chief executive George Weston said: “This investment is an exciting development for our UK branded grocery business. Jordans is a wonderful brand which is positioned well to benefit from the consumer’s growing desire for natural ingredients and healthy eating.”