UK chip maker Tyrrells has been sold to Amplify Snack Brands for £300 million as the US-based snacks giant looks to increase its international reach and better-for-you division.
Under the terms of the deal, Tyrrells’ current owner Investcorp and members of the Tyrrells management team will receive £278 million in cash and around 2.1 million shares of Amplify’s common stock.
Amplify, which owns brand such as SkinnyPop, Paqui and Oatmega, expects to finalise the transaction by the end of the third quarter.
“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,” said Tom Ennis, Amplify’s president and CEO.
David Milner, CEO of Tyrrells, said: “We’re excited to join Amplify’s Better-For-You snack food platform as we combine our highly complementary businesses and brands to build an even stronger company for future international success.
“We were lucky enough to be able to choose our long-term partner and this partnership provides a significant opportunity to accelerate sales growth for Tyrrells’ brands in the United States, as well as the scope for Amplify’s brands in the international marketplace. 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,” Mr Milner said.
“Business as usual” for Australia
Tyrrells launched in Australia in 2014 and bought Australian snacks firm Yarra Valley Snack Foods in August last year. Earlier this year Tyrrells began manufacturing its products at the former Yarra Valley Snack Food facility in Victoria’s Yarra Valley in late 2015, the first factory to product Tyrrells crisps outside of the UK.
Shane Hunter, marketing director of Yarra Valley Snack Foods told C&I Week it will be “business as usual” for the company’s local operations.
“This is a fantastic next step for Tyrrells Crisps and a terrific achievement for a small, UK farm-based business that only a year ago made its first international acquisition with the purchase of Yarra Valley Snack Foods. To be joining the second fastest growing snack food company in the US, whose portfolio is made up entirely of ‘better-for-you’ snacks is a great fit for us here in Australia.
“For the moment it’s business as usual, but the opportunity to introduce Australian brands Thomas Chipman Organic Chips and The Wholesome Food Company to a new audience in North America who have an affinity for and understanding of the organic and better for you segments is very exciting for the team here at Yarra Valley Snack Foods,” Mr Hunter said.
C&I Week contacted Tyrrells Australia for comment but did not respond prior to publication.