Brief: Confectionary firm Cloetta says buys Candyking

Cloetta AB

17/02/2017 12:30

Feb 17 (Reuters) - Cloetta Ab  CLOEb.ST  
    * Cloetta acquires Candyking 
    * Says Candyking's total sales (including danish tax) 
amounted to approx. SEK 1,300m on a rolling twelve month basis 
per Q3 of 2016 
    * Says underlying EBITDA was approx. SEK 70m and underlying 
EBIT approx. SEK 30m. 
    * Says acquisition is expected to create substantial 
synergies that will gradually be realized during years 2017 - 
2020 
    * Says final outcome of synergies is dependent on volume 
development 
    * Says initial purchase price amounts to SEK 325m on a cash 
and debt free basis with a potential additional purchase price 
of maximum SEK 225m 
    * Says Cloetta group's target of an underlying EBIT margin 
of 14 percent stands firm 
    * Says majority of initial purchase price and potential 
additional purchase price will be allocated to holders of 
Candyking's SEK 750m bond loan 
    * Says in connection with closing of acquisition, 
Candyking's bonds will be delisted from Nasdaq Stockholm 
 
Source text for Eikon:  ID:nWkr3HFvmj  
Further company coverage:  CLOEb.ST  
 
 (Reporting by Stockholm Newsroom) 
 ((stockholm.newsroom@thomsonreuters.com; +4687001017;))