Cloetta acquires pick and mix candy supplier
Confectionery manufacturer Cloetta has agreed to acquire Candyking, a pick and mix candy supplier in the Nordic countries and UK.
Cloetta will acquire 100% of the shares in Candyking as well as 100% of Candyking’s outstanding bond and other debt. The initial purchase price amounts to £29 million on a cash and debt free basis, with a potential additional purchase price of a maximum £20m based on the result of Cloetta’s and Candyking’s combined sales volume of pick and mix in confectionery and natural snacks in the Nordic countries, the UK and Poland during 2018.
”The acquisition of Candyking will significantly strengthen Cloetta’s position in Denmark, Norway and the United Kingdom,” says Danko Maras, CFO of Cloetta. “Cloetta will be able to develop the Candyking brand and product offering, in order to offer an attractive customer and consumer experience. 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.”
Candyking offers stores a complete concept in pick and mix candy including products, displays and accompanying store and logistic services. Candyking itself does not manufacture any products, instead they purchases products from different suppliers. The company currently supplies approximately 8,000 retail outlets in seven countries. Sweden, the UK, Norway and Denmark are the largest markets. Other markets are Finland, Ireland and Poland. In total Candyking have approximately 370 employees.
Candyking’s trademarks in confectionery are Candyking, Karamellkungen and Candyking Favourites. The company is also a leading pick and mix supplier within natural snacks in Sweden and Finland under the Parrot brand.