Raisio / FI. (rg) Finland’s Raisio Group has agreed to divest its confectionery business to Valeo Foods Limited. Raisio’s confectionery operations in the UK and Czech Republic will be transferred to become part of Valeo Foods Group by 29 December 2017 at the latest. The arrangement will be carried out as a share transaction and its enterprise value is EUR 100 million. Equity value of the deal paid by the buyer is EUR 77 million.
«The divestment of the confectionery business is an important strategic step for Raisio on its path towards a responsibly operating forerunner focusing on healthy foods. Together with our already strong balance sheet, the proceeds from the deal allow extensive acquisitions that strategically fit our core business», says the Group’s President and CEO Pekka Kuusniemi.
Raisio’s divested confectionery business includes six production plants in the UK and Czech Republic, as well as the brands, of which Poppets, Fox’s, XXX, Just and Pedro are the best-known. Furthermore, the business is a significant confectionery producer for its retail and industrial customers.
For the divestment of its confectionery business, Raisio will record divestment loss of some EUR 38 million. After completion of the transaction, Raisio estimates its equity ratio to be around 75 percent and its balance sheet to total EUR 370 million.
In January to September 2017, net sales for Raisio’s confectionery business totalled EUR 71.3 million and Ebit was EUR 6.4 million. The confectionery business has some 1’000 employees who will be transferred to Valeo Foods.
Valeo Foods owns a fast growing portfolio of category leading brands, many of them iconic household names in their markets. The Group has annual sales of over EUR 700 million. More information about Valeo Foods can be found at valeofoodsgroup.com.
Valeo Foods’ CEO Seamus Kearney says: «This transaction is consistent with Valeo Foods’ strategic focus and we are very excited about the opportunities to expand and grow these businesses through a combination of significant new capital and brand investment».
Addendum: confectionery business now transferred
Raisio announced on 22 December 2017 it has agreed to divest its confectionery business to Valeo Foods Limited at enterprise value of EUR 100 million. As the buyer has paid the purchase price of the shares, EUR 77 million as well as all other conditions for completion of the deal have been fulfilled, Raisio’s confectionery operations have transferred to be a part of Valeo Foods Group on 29 December 2017.
Raisio’s divested confectionery business includes six production plants in the UK and Czech Republic, as well as the brands, of which Poppets, Fox’s, XXX, Just and Pedro are the best-known. Furthermore, the business is a significant confectionery producer for its retail and industrial customers. In January to September 2017, net sales for Raisio’s confectionery business totalled EUR 71.3 million and Ebit was EUR 6.4 million.
