Finnish food group Raisio has added to its confectionery stable with the acquisition of Czech group Candy Plus.
Raisio said the EUR20.5m deal would "complement" its UK confectionery operations, which the Fox's mint brand.
The company said Candy Plus focuses on the "faster-growing" categories of soft jellies, liquorice and functional confectionery. Brands account for 40% of sales at Candy Plus, Raisio said.
Paul Simmonds, vice president of Raisio's consumer brands unit, said Candy Plus is a "profitable and growing business" that has a wide customer base across Europe. "This will provide Raisio with interesting growth opportunities," he added.
Raisio said Candy Plus would "further improve" profits from its consumer division, which also includes functional dairy brand Benecol.
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Raisio acquired a confectionery company in Continental Europe
Raisio plc, Stock Exchange Release, 13 November 2012 at 9 a.m. Finnish time (7 a.m. UK time)
RAISIO ACQUIRED A CONFECTIONERY COMPANY IN CONTINENTAL EUROPE
Raisio has acquired the Czech company Candy Plus, a confectionery manufacturer. This acquisition complements Raisio’s existing and successful confectionery activities in the UK trading as Big Bear Confectionery. Raisio is paying an enterprise value (EV) of EUR 20.5 million including liabilities arising from a new capital investment of EUR 2.3 million in fruit-liquorice capability. Raisio will pay the consideration from its cash reserves.
Candy Plus was founded in 2000 and the company is owned by private investors. In 2011, the company’s net sales totalled EUR 23.3 million, EBITDA EUR 2.9 million and EBIT EUR 2.1 million. Assets on 31 December 2011 totalled EUR 17.6 million, liabilities EUR 9.1 million and equity EUR 8.5 million. The company’s two production sites are located in the eastern part of the country, in Rohatec and Petrvald u Karviné. The company employs more than 400 people all of whom will continue as Raisio’s serving employees.
Paul Simmonds, Vice President of Raisio’s Consumer Brands unit, says that Candy Plus is a profitable and growing business which has a wide customer base across east and west Europe and other parts of the world. “This will provide Raisio with interesting growth opportunities. Candy Plus’ high-quality products and skilled staff are excellent additions and complement Raisio’s confectionery portfolio and expertise”, says Simmonds.
The Candy Plus range focuses on the faster growing product categories of soft-eating and higher-fruit jellies, liquorice and functional confectionery. Candy Plus has strong consumer brands in its home market, the Czech Republic, including Juicee Gummee, Fundy, Pedro and Cuksy. Branded products account for about 40% of net sales.
With the acquisition, Raisio will be able to make better use of synergies in its confectionery operations, which will be seen in increased flexibility and improved cost-effectiveness.
On 13 November 2012, Candy Plus will become part of Raisio’s Consumer Brands unit and this acquisition is expected to further improve profitability of the Brands Division. Raisio continues the implementation of its growth phase according to plan.