Heinz to Buy United Biscuits’ Frozen-Food Unit

H.J. Heinz & Co. agreed to buy the frozen-food unit of United Biscuits Holdings for about $317 million in cash in a bid to boost its presence in Britain and Ireland. United Biscuits’ frozen-food business had about $360 million in sales in 1998 and employs about 3,000 workers at plants in Britain and Spain. It makes frozen foods ranging from San Marco pizzas to Linda McCartney vegetarian foods and Jane Asher desserts. Heinz said those products would join its Weight Watchers frozen meals in Britain, where frozen-food sales are rising at about 5% to 10% a year. United Biscuits, Britain’s biggest cookie maker, put its frozen-foods business up for sale to focus on its main McVitie’s cookie unit and KP snacks business, which are expanding in Europe. The transaction is subject to the regulatory approval of the European Commission. Shares of Pittsburgh-based Heinz closed down 94 cents at $45.50 on the NYSE.