04 May 2012

Bye bye weetabix

Now that it is owned by the Chinese, will it still taste the same?  The Guardian is only interested in the financial details:

It's just like the old days. Private equity firm buys ancient family-controlled company with reliable but slowly-growing earnings, injects massive financial leverage, collects a few dividends via further refinancings and then sells out several years later at a spectacular profit.
This is indeed the story of Weetabix since Sir Richard George's family sold the 80-year-old firm to Lion Capital's predecessor, Hicks Muse, in 2004. The price paid then was £642m but Thursday's sale, in which Chinese state-owned firm Bright Food is buying a 60% stake, values the cereal maker at £1.2bn.

I used to like weetabix.  Not as much as frosties, but still.

No comments: