Cloetta AB: to Acquire Nutisal

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.