Kraft to Acquire United Biscuit in UK

Kraft to Acquire United Biscuit in UK

The largely noncash transaction is valued at $1.1 billion, including Kraft's assumption of some debt and the return of its 25% stake in United Biscuits back to the company. Further financial details couldn't be learned.

The deal with United Biscuits will give Kraft control of brands like Triunfo cookies in Portugal and HobNobs in Spain. It will also allow Kraft to regain control of brands like Ritz in Europe.

Kraft, Northfield, Ill., is the world's second-largest food company by sales with brands like Maxwell House coffee and Oscar Mayer meats. The company, which has faced increased competition from private-label products in the U.S., ousted its chief executive, Roger Deromedi, and installed former Kraft executive Irene B. Rosenfeld last month.

Under Ms. Rosenfeld, the company is expected to accelerate its push for new brands as it seeks to boost its top-line performance. The company hasn't had many home-grown hits in recent years and is hungry for new innovations.

To a certain degree the company has been constrained by its capital structure from making large acquisitions. Some 88% of Kraft's stock is owned by Altria Group, maker of Marlboro cigarettes and other products. Altria has indicated it would consider spinning off this interest in Kraft once certain tobacco-related litigation has been resolved.