Turkey's largest food group, Yildiz Holding, expects to complete the financing of its acquisition of British-based cookies and snacks maker United Biscuits in 10 days, its chief executive said on Tuesday.
Yildiz on Monday bought United Biscuits from private equity owners Blackstone Group and PAI Partners in an estimated 2 billion pound ($3.2 billion) deal, which it said made it the world's third-biggest biscuit maker.
"We will fund 60 percent of the deal from our own pocket, and obtain the remaining 40 percent from financing institutions. We will make the payment in 10 days," Murat Ulker, chairman of Yildiz Holding, told a press conference.
HSBC has underwritten a leveraged loan backing the acquisition, banking sources said on Tuesday.
Yildiz, a food and beverage maker which owns Ulker Biskuvi, did not give financial details, but sources familiar with the deal and other media reports said it was worth more than 2 billion pounds including debt.
The Yildiz chairman said the acquisition price quoted in media was not far from reality.
The acquisition of the maker of McVitie's biscuits, Jaffa Cakes and Jacob's crackers is the third and largest by Yildiz in recent years as it strives to become a global name.
Yildiz bought premium chocolate maker Godiva for $850 million in 2007 and DeMet's Candy Company, the U.S. maker of Flipz chocolate pretzels and Turtles covered nut clusters, for $221 million last year.
Yildiz plans to invest $200 million in United Biscuits and Godiva annually, Ulker said. A potential flotation of United Biscuits would not take place for at least a few years, to give time for the company to be fully integrated, he said.
