Associated British Foods Plc. said it has agreed to merge its Ryvita crispbread and healthy snacks business with the family-run cereal business W Jordan & Son Ltd. (Jordans) to expand in the healthy eating market.
AB Foods will own 62% of the combined business and the remainder will be held by Jordans investors, the London- based company said in a statement. AB Foods agreed to buy a 20% stake in Jordans in September.
Founded by brothers Bill and David Jordan in 1972, Jordans makes muesli, breakfast bars and porridge from natural ingredients, its Web site shows. Sales in the year ended Feb. 29 were £85m. AB Foods said it will use its international presence to expand the Jordans brand overseas.
"The combination of Jordans and Ryvita will create a leading position for the supply of products to meet the increasing consumer demand for natural ingredients and healthy eating,'' AB Foods said in the statement.
Ryvita, which makes low fat crispbread from wholegrain cereal and purchases 93% of the annual U.K. rye crop, has manufacturing sites in the English cities of Poole and Stockport. Combining the unit with Biggleswade, England-based Jordans will produce "some cost savings'' the company said in the statement, without giving financial details.
AB Foods expects to complete the transaction in the third quarter of this year, the statement shows.
