Turkey's Pladis eyeing Nestle's US candy amid expansion plan

Chocoladefabriken Lindt & Spruengli AG

22/09/2017 14:23

LONDON, Sept 22 (Reuters) - Pladis, the Turkish company that 
owns Godiva chocolate and McVitie's biscuits, is considering 
making an offer for Nestle's  NESN.S  U.S. confectionery assets, 
which could be valued at around $2 billion, as part of its 
international expansion plans. 
    "We are looking at Nestle's confectionery assets in the 
U.S.," Chief Executive Cem Karakas told Reuters. "Certainly we 
haven't made a decision, but we are looking at it." 
    Pladis, itself born from a string of acquisitions, is not 
working with external financial advisors on the process, which 
has also attracted Lemonheads owner Ferrara.  urn:newsml:reuters.com:*:nL1N1KC1A1    
    A bid for Nestle's U.S. portfolio -- which includes regional 
mass-market brands such as Butterfinger, Crunch and 100 Grand -- 
would appear to be a shift from Pladis's stated strategy of 
focusing on the high end of the market, which is performing 
better than mid-tier brands. 
    Nestle in June said it might sell its U.S. confectionery 
business, the latest evidence of pressure on the North American 
market following last year's failed bid by Mondelez 
International  MDLZ.O  for Hershey  HSY.N .  urn:newsml:reuters.com:*:nL8N1JC4WV  
 urn:newsml:reuters.com:*:nL3N1BA4KS 
  
     
 
 (Reporting by Martinne Geller; Editing by Keith Weir) 
 ((martinne.geller@thomsonreuters.com; +44)(0)(2075420797; 
Reuters Messaging: martinne.geller.reuters.com@reuters.net)) 
 
Keywords: PLADIS STRATEGY/