Private equity investor LDC has sold its shares of Hills Biscuits to Cerealto UK for an undisclosed sum.
Part of Lloyds Banking Group, LDC has exited its investment in the Manchester-based biscuit manufacturer after a seven-year partnership. It first came on board as the main shareholder in 2017 when it supported a management buyout from existing owners.
Since then, it has sought to support the bakery’s organic growth strategy. As part of this, it helped the business invest in new technology to improve manufacturing efficiencies and increase capacity. During the seven-year partnership, Hill Biscuits more than doubled revenues to over £40m in 2024, including reporting sales growth of 44% for last year.
Hills Biscuits was founded in 1855 by Sarah and John Hill as a family-run shop. It expanded and in 1893 moved into Tudno Mill in Ashton-under-Lyne, Manchester, where it remains today. The business has grown to become one of the largest and longest established biscuit manufacturers in the UK, producing hundreds of millions of biscuits each year, supplying a range of customers across retail, wholesale, and foodservice markets.
Hills Biscuits CEO Frank Bird described the acquisition as a “pivotal moment” in the business’ 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 explained.
“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.”
Bird added that the business is looking forward to partnering with Cerealto UK, a portfolio company of Davidson Kempner Capital Management and Afendis Capital Management, and is now “poised to accelerate growth and innovation even further”.
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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