Stockholm / SE. (cab) Swedish Cloetta AB, a leading confectionery company in the Nordic region, the Netherlands and Italy, has signed an agreement to acquire Alrifai Nutisal AB, a leading Swedish company within dry roasted nuts. The acquisition is in line with Cloettas´s strategy to broaden its product portfolio within Munchy Moments. «I am very happy to announce a significant step in to a new category in our home markets with this acquisition. Cloetta will now be able to offer consumers a new Munchy Moment with an established brand in the growing nuts segment. Cloetta´s strong route to market combined with the market growth in the category should facilitate significant growth going forward», says Bengt Baron, CEO of Cloetta. «I am excited about the future of Nutisal. I am confident that we have placed the business and the brand in safe hands. This is a fantastic opportunity, and I am convinced that Cloetta will ensure the continued growth of Nutisal in Sweden and beyond», says Mohamed Rifai, CEO of Alrifai International Holding Limited. The acquisition will support profitable growth by expanding Cloetta into adjacent categories, but will generate only limited synergies within existing sales, administration and logistics. The acquisition is expected to generate an additional growth in sales of about one percent on a Group level in the next few years. It will require exceptional restructuring cost of approximately ten million SEK in 2014. The acquisition will, in 2014, have a very limited effect on Cloetta´s operating profit as the company is in a growth phase. However, the acquisition is expected to be EPS accretive in 2015. The upfront purchase price is 110 million SEK in cash with a potential earn-out based on certain targets related to the results of Nutisal for 2016. The earn out is maximum 300 million SEK in cash. The acquisition will be financed through Cloetta´s existing credit facilities, the company said in its news release.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Caseys: Agrees to Acquire 198 CEFCO Convenience Stores
- Albertsons Companies: Reports Q1 Fiscal 2024 Results
- Insomnia Cookies: sets course for accelerated growth
- Kesko Group: Announces H1-2024 Financial Results
- Idak Food Group: gets new majority shareholder
- Regal Food Group: Expands Chilled Desserts Sector
- Legacy Bakehouse: Acquires Assets of Angelic Bakehouse
- Idak Food Group: Margherita SRL made strategic investment
- Regal Food: Acquires Bradford Warehouse Facility
- Zabka Group: opens first »Froo« stores in Romania
- Goodfood: Reports Third Quarter 2024 Results
- Greggs: announces new National Distribution Centre
- Greencore: announces H1-2024 trading update
- Orkla ASA: reports strong profit improvement in Q2-2024
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas