Confectionary firm Cloetta to buy rival Candyking (updated)
17/02/2017 13:17
(Adds background, detail shares)
Feb 17 (Reuters) - Swedish confectionary firm Cloetta AB
CLOEb.ST said on Friday it had agreed to buy rival Candyking
for 325 million crowns ($37 million) plus a possible maximum 225
million additionally in a deal it said would strengthen its
position within the pick & mix candy segment.
* Candyking, a concept supplier of pick and mix candy in the
Nordic countries and the United Kingdom, had total sales
(including Danish tax) of around SEK 1,300 million on a rolling
twelve month basis per Q3 of 2016.
* Says Candyking's underlying EBITDA was around SEK 70
million and underlying EBIT around SEK 30 million.
* Cloetta shares rise 5.1 percent in Stockholm by 1308 GMT.
* Cloetta had sales of SEK 5,852 million in 2016.
* Initial purchase price amounts to SEK 325 million on a
cash and debt free basis.
* Says potential additional purchase price of maximum SEK
225 million based on the result of Cloetta's and Candyking's
combined sales volume of pick and mix in confectionary and
natural snacks in the Nordic countries, the United Kingdom and
Poland during 2018.
* 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 transaction is subject to approval from the Swedish
Competition Authority.
* The seller of the shares is Candyking's CEO, Dani Evanoff.
* 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 750 million 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
($1 = 8.8748 Swedish crowns)
(Reporting by Johannes Hellstrom; Editing by Daniel Dickson)
((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))
Keywords: CLOETTA CANDYKING/