Kraft Foods Inc. said Monday it will acquire the Spanish and Portuguese operations of United Biscuits for about $1.1 billion. The agreement also returns to Kraft the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa.
In addition to the Nabisco trademarks, the UB operations in Spain and Portugal include leading local biscuit brands, as well as the leading dry dessert business in Iberia, Royal. The deal also includes UB's Iberian canned meat, tomato, and fruit juice businesses as well as all seven UB manufacturing facilities and 1,300 employees in Iberia. Together, these Iberian-based businesses generated net revenues of approximately $400 million in 2005.
The transaction is expected to close in the third quarter. After closing, Kraft will no longer have any interest in United Biscuits or any of its affiliates. United Biscuit held the Nabisco rights since 2000.
