US sale sees Kettle Foods cashing Chips

THE maker of up-market Kettle Chips has been sold to a US snack firm after an auction valuing the firm at more than £400 million.

Kettle Foods is to be acquired by San Francisco's Diamond Foods.

A variety of players in the US market are thought to have made bids to Kettle's owner Lion Capital, the London-based private equity firm behind brands including Weetabix and Wagamama.

United Biscuits, which owns McVitie's, Jacob's and Twiglets, is also believed to have offered up to 200m for the business.

Diamond said it will take on Kettle operations in both the United States and the UK after sealing an agreement with Lion worth $615m (402.3m).

Kettle is based in Oregon, where it was founded in 1978. It started UK production in 1989.