UK’s 2 Sisters Food Group (2SFG) has agreed to divest a portion of its Fox’s Biscuits business to a Ferrero-related firm for £246m ($308m).

As part of the deal, Ferrero-related firm will be acquiring the manufacturing facilities in Batley and Kirkham that produce biscuits for Fox’s brand.

Boparan Holdings president Ranjit Singh said: “Fox’s Biscuits has always been an attractive brand and as one of only two major independent biscuit makers in the UK, it is a prized asset in this market.

“We have listened to many interested parties over the years, but we have always been clear that Fox’s would only be sold to the right new home, at the right time and for the right value. This sale represents another significant deal for us, underlining our commitment to our business turnaround.

“It strengthens our balance sheet even further and shows we are following through with our promises to focus on our key strengths. I wish all colleagues at the two Fox’s Biscuits sites every future success with an ambitious new owner.”

Boparan Holdings is the parent company of 2 Sisters Food Group.

2SFG added that it will retain the third site at Uttoxeter, engaged in the production of own-label biscuits for major retailers.

Boparan Holdings CEO Ronald Kers said: “This sale is in line with our strategy and is further good news as we build on two years of strong turnaround momentum and continue to focus on our core business. It strengthens our liquidity position and reduces our leverage ahead of our planned refinancing of the business.

“We believe the sale to Ferrero is not only beneficial for 2 Sisters Food Group, but it means a positive future for Fox’s brand with an owner who has a compatible culture and a global reputation for high-quality branded chocolate and biscuit products.”

Completion of the deal should take place on 31 October.