The company that makes KP Nuts, Hula Hoops and McCoy’s crisps has been sold to a German firm for a reported fee of £500 million. The business, which is the UK’s second largest snack maker, was sold by United Biscuits, which also owns the McVitie’s and Jacob’s brands.

Subject to completion next year, they will join the UK savoury snacks business of Intersnack, which makes Pom-Bear crisps and Penn State pretzels.

United, which is owned by private equity firms Blackstone and PAI Partners, will retain the baked bagged snacks brands manufactured in its biscuit factories, including Mini Cheddars and Twiglets.

Including KP Snacks, United employs around 8,000 people, 7,000 of them in the UK. Intersnack was founded in 1968 and is on track for record sales of £1.4 billion this year, including £80 million from the UK.

Intersnack, which has turnover of about 100 million euros in the UK, said the deal would allow it to grow further and strengthen its position.

The deal will be financed with Intersnack’s shareholder equity and a syndicated loan underwritten by Commerzbank, HSBC Trinkaus & Burkhardt, HSBC and UniCredit.