Zetar bought the Teesside-based manufacturer through its subsidiary, The Baked Snacks Company.
The acquirer paid £4.7 million in cash, with a deferred sum of up to £23 million due if Baked Snacks’ pre-tax profits in the next three years exceed £18 million. The deal will be satisfied in cash funded by Zetar’s existing resources and through debt provided by Barclays.
Britannia’s chief executive, Mobeen Mehdi, and other members of the management team remain with the company.
Zetar, which was established to invest in the confectionery and snack foods sectors, targeted Britannia to strengthen its position in the market for healthier baked snacks. The acquired company’s products, which include crisps, rice crackers and cereals, are sold under various labels including the Weight Watchers brand.
In year to July 2006, Britannia generated turnover of £4.5 million, but recorded unaudited pre-tax losses of £400,000.