LDC, the private equity arm of Lloyds Banking Group, has sold its stake in Hill Biscuits to Cerealto UK, which is part of Davidson Kempner Capital Management and Afendis Capital Management. The financial details of the deal have not been disclosed.

Founded in 1855 by Sarah and John Hill, Hill Biscuits began as a small family shop and relocated to Tudno Mill in Ashton-under-Lyne, Manchester, in 1893. Today, the company caters to various markets, including retail, wholesale, and foodservice.

LDC initially invested in Hill Biscuits in 2017 to help the company implement its growth strategy. This included investments in new technology aimed at enhancing manufacturing efficiency and increasing production capacity, as well as initiatives focused on employee development. As a result of these efforts, Hill Biscuits has seen significant growth, with revenues more than doubling to over £40 million in 2024 and a reported sales increase of 44% last year. The company currently employs around 350 people.

Both LDC and Hill Biscuits received advisory support from Clearwater and Addleshaw Goddard during the transaction.