Yahoo Finance Former Hovis Boss Finds Appetite For Lucozade
Michael Clarke, the former chief executive of Britain's biggest branded food producer, is switching to the drinks sector with a role advising one of the world's biggest buyout firms on a £1.5bn bid for Lucozade and Ribena.
Sky News understands that Mr Clarke has been engaged by Kohlberg Kravis Roberts (KKR) to work on its offer for the two drinks brands, which are being offloaded by GlaxoSmithKline (Other OTC: GLAXF - news) , the FTSE-100 pharmaceuticals giant.
His role is the first UK post that he is understood to have taken on since resigning from Premier Foods (LSE: PFD.L - news) in January, midway through a restructuring of the company behind Hovis bread and Mr Kipling cakes.
Mr Clarke's departure from the role after less than 18 months shocked City investors and cast renewed doubt over the company's future. It has since regained momentum under Mr Clarke's successor, Gavin Darby, and last month produced a strong set of results, with underlying trading profits up by 50% during the first half of the year.
KKR, which is listed on the New York Stock Exchange, is among the world's most prominent private equity groups, owning large UK-based businesses such as Boots, the high street chemist, and Pets At Home.
The firm is up against stiff competition to buy Lucozade and Ribena, which GSK wants to sell before the end of the year.
A host of other drinks groups, including Suntory, the Japanese giant, and AG Barr, which owns Irn-Bru, are examining offers.
Their stiffest competition will come from private equity groups, with Blackstone (NYSE: BX - news) and Lion Capital among those with an extensive track record of investing in the sector.
In 2005, they acquired the European beverages division of Cadbury-Schweppes, selling it four years later to Suntory for roughly £1.5bn.
Other buyout firms, such as Bain Capital, CVC Capital Partners and Onex, a Canadian fund, are among those also considering bids.
The outcome of the auction of Lucozade and Ribena will go some way towards reshaping the UK soft drinks market.
Britvic (Other OTC: BTVCF - news) and AG Barr, which makes Irn-Bru, recently saw a proposed merger approved by competition authorities, but it has since been abandoned because of the shifting economics of the original deal.
It is likely that Mr Clarke would take on a board role at the drinks producer if KKR was successful with its offer, although the nature of this was unclear on Tuesday.
KKR declined to comment while Mr Clarke could not be reached for comment.
