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Amplify to buy UK crisp producer Tyrrells for £300m

FBR Staff Writer Published 09 August 2016

US snacks firm Amplify Snack Brands has entered into an agreement to acquire UK-based potato crisps producer Tyrrells from private equity firm Investcorp for £300m.

Amplify will pay nearly in £278m in cash and allot approximately 2.1 million shares of its common stock to buy Tyrrells.

The transaction is expected to be completed by the end of the third quarter of 2016.

Founded in 2002 and headquartered in Herefordshire, England, Tyrrells is a global snacking company that sells brands including Tyrrells Potato Crisps, Tyrrells branded Vegetable Crisps, Tyrrells Poshcorn, Tyrrells Nibbles, Tyrrells Tortillas, in the UK Europe and many other international markets.

Tyrrells earned approximately $111m in net sales for the last twelve months ended June 30, 2016.

Amplify’s president and chief executive officer Tom Ennis said: “Together, Amplify and Tyrrells will partner to create a truly unique international Better-For-You snack food leader that can continue to drive robust future revenue and earnings growth.

“We plan to capitalize on each company’s market leadership and sales forces to drive higher revenue growth than either company could independently accomplish.”

Following the completion of the transaction, Tyrrells will become a wholly-owned subsidiary of Amplify.

Amplify plans to finance the cash portion of the transaction with debt and has secured financing commitments from Jefferies Finance.

The acquisition will enable Tyrrells’ brands to leverage Amplify’s US-focused capabilities.

Following the closing of the transaction, Amplify’s North American presence would account for nearly 63% of its net sales, while the UK would represent approximately 23% of net sales.

Tyrrells chief executive officer David Milner said: “Building upon the strength of each of our respective customer relationships and leveraging Tyrrells’ manufacturing capabilities, we shall be entering new territories as well as broadening our reach in existing markets.”

In 2013, Bahrain-based Investcorp acquired Tyrrells from Langholm Capital for £100m.

Tyrrells expanded its presence in Australia with the acquisition of Yarra Valley Snack Foods last year.

Image: Amplify to buy UK crisp producer Tyrrells for £300m. Photo: Courtesy of Keerati/FreeDigitalPhotos.net.