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Cloetta has a sweet tooth for Candyking
Posted on Friday, 17 February 2017 14:53
Cloetta has agreed to acquire Candyking in a deal that values the Swedish pick and mix maker at SEK 550.00 million (EUR 58.14 million) on a cash and debt free basis.
The target is billed as a leading provider of sweets in the Nordic countries and the UK and is expected to significantly strengthen the buyer’s position within the market.
Cloetta is acquiring all of Candyking’s shares, as well as its total outstanding bond and other debts, for an initial SEK 325.00 million with a potential additional SEK 225.00 million based on the combined sales volume of the group in 2018.
According to the target’s chief executive Dani Evanoff, who is also selling stocks, the majority of the proceeds will be allocated to the holders of the company’s SEK 750.00 million bond loan.
Candyking offers stores a complete concept in pick and mix candy, including products, displays and accompanying store and logistic services.
The company itself does not manufacturer the sweets and instead purchases from different suppliers.
Candyking, which is currently serves about 8,000 retail outlets in seven countries, generated sales of SEK 1.30 billion on a rolling 12-month basis per the third quarter of 2016.
Underlying earnings before interest, taxes, depreciation and amortisation totalled SEK 70.00 million for the period.
Candyking was taken over by Evanoff in a management buyout last year.
According to Zephyr, the M&A database published by Bureau van Dijk, this would be Cloetta’s first acquisition since it picked up Aran Candy and the Jelly Bean Factory brand for SEK 140.00 million in 2014.
The group’s outgoing chief executive Danko Maras noted: “The acquisition will also strengthen our position in natural snacks with the Parrot brand. In addition, there are substantial cost synergies that make the acquisition attractive.”
© Zephus Ltd