US firm set to swallow Weetabix
FAMILY-controlled breakfast cereal maker Weetabix looks set to be bought by US venture capitalist Hicks Muse Tate & Furse in a deal worth £642m.
Hicks Muse, which owns the giant Premier Foods, offered £53.75 a share for Ofex-quoted Weetabix, valuing the George family's 38.2% stake at £245m.
The bid, which includes an extraordinary dividend of 100p a share, is a 67% premium to Weetabix's closing share price on Monday.
Directors led by chairman Sir Richard George are recommending the offer, which was disclosed after last night's market close.
Hicks Muse plans to combine Weetabix with Premier, which has annual sales of more than £650m. Sir Richard will remain as non-executive chairman of the enlarged group.
Hicks Muse pledged to develop Weetabix's valued brands, including Ready Brek and Alpen, and its cereal snack bars.
It said there would be no imminent redundancies as a result of the takeover and guaranteed employees' existing pension rights.
Weetabix made £44.4m in pretax profits last year, on turnover of £361.6m.
