News

Hill Biscuits investor exits after 7 years

31-Jul-2024 - Last updated on 31-Jul-2024 at 10:16 GMT

The new leadership team at Hill Biscuits, from top left to right: Steve Greenhalgh, Tracey Meadows, and Brendon Banner; and from bottom left to right: Frank Bird and Simon Worth

Private equity investor LDC, which is part of Lloyds Banking Group, has sold its shares of Hill Biscuits to Cerealto UK.

Cerealto UK, a portfolio company of Davidson Kempner Capital, has acquired LDC shares of Hills Biscuits for an undisclosed sum.

Hills Biscuits, which was founded in 1855 by Sarah and John Hill, began life as a small, family-run store. The business later expanded and moved into premises at Tudno Mill in Ashton-under-Lyne in Manchester in 1893, where it remains today.

The company has now become one of the largest and longest established biscuit manufacturers, supplying retail, wholesale and foodservice, and employing 350 people.

LDC originally partnered with Hill Biscuits in 2017 to support its organic growth strategy. Its funds later helped the producer to invest in people development, as well as new technology to improve efficiencies and increase capacity.

During their seven-year partnership, Hill Biscuits more than doubled its revenue, reaching more than £40m in 2024. Over the last year, it has seen sales growth of 44%.

Frank Bird, CEO of Hill Biscuits, described today’s news as a notable milestone in its history.

"This acquisition marks a pivotal moment in our journey to become the leading provider of everyday essential biscuits. This exciting opportunity allows us to harness and energise the experience and excellence of our two bakeries, enhancing our capabilities to meet customer needs,” he said.

"I want to extend my gratitude to LDC, our investment partner since 2017. With their support, we have built a dedicated leadership team that has significantly grown our business. LDC has provided us with the confidence and resources to develop, invest, and innovate. Over the past seven years, we have made notable strides in enhancing our processes and products. Now, as we approach our 170th anniversary next year, we’re looking forward to partnering with Cerealto UK, and are poised to accelerate growth and innovation even further."

Rob Powell, Partner at LDC added: “Hill Biscuits is a renowned and trusted supplier of quality products and it’s a business that refuses to stand still, achieving impressive rates of growth over recent years. We are proud to have supported the business and we wish the team every success for the future.”
LDC and Hill Biscuits were advised by Richard O’Donnell, Joshua Gorman and James Croxen of Clearwater and Paul Medlicott, George Danczak and Dan Conway of Addleshaw Goddard.

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