Acquisition of Sugar Puffs by Big Bear Group PLC

DATE
August 2006

TRANSACTION TYPE
Corporate Acquisition

VALUE
£ Undisclosed

SECTOR
Food & Beverage

Spayne Lindsay & Co. advises Big Bear Limited on its refinancing and the acquisition of Sugar Puffs from PepsiCo.

Big Bear Limited, owner of the Fox’s Glacier, Just Brazils, XXX mints and Poppets brands, has agreed to acquire Sugar Puffs and the Harvest Cereal Bar brands from PepsiCo for an undisclosed amount.

Sugar Puffs is one of the UK’s leading heritage cereal brands, launched in 1954. For Big Bear it represents a great opportunity to restore an ‘orphan brand’ and reinvigorate the top line through re-engaging with the adult market and lapsed users, better promoting the positive natural attributes of the product, and leveraging the potential of the iconic Honey Monster through brand extensions.

The assets acquired in this transaction include a factory in Southall, where Sugar Puffs and Harvest Bars will continue to be produced. As well as in the UK, Sugar Puffs also has a strong presence in the Scandinavian market, in particular Denmark, where Sugar Puffs has 12% of the local market. These export sales account for 20% of Sugar Puffs production in Southall.

Spayne Lindsay worked with Big Bear to achieve exclusive negotiations with PepsiCo, and was also involved in the refinancing of Big Bear, featuring a new debt package being put in place, as well as raising new equity funds. Investec continues to be the largest single institutional shareholder in the enlarged Big Bear business.