Cloetta has signed an agreement to sell Cloetta Italy to Katjes International. The sale equals an Enterprise Value (EV) of approximately SEK 450m. The proceeds will generate a positive net cash effect of approximately SEK 415m.
“I am very pleased that we have found a new home for our Italian brands, factories and employees. We already know Katjes and are well aware of their business experience and good employer track record. I am convinced that they will be able to manage and develop the business going forward. This is a very good solution for all parties and follows Cloetta’s strategy to focus more on its business in North-Western Europe including the recently acquired Candyking business,” says Henri de Sauvage-Nolting, CEO of Cloetta.
Cloetta Italy, headquartered in Cremona, produces and sells brands such as Sperlari, Saila, Dietor, Galatine and Dietorelle. The factories are located in Cremona, Gordona, San Pietro in Casale and Silvi Marina. In 2016, Cloetta Italy had sales of SEK 745m and approximately 400 employees.
The deal includes the complete Italian commercial organization, the four production units and all Italian brands. The divestment will result in an impairment estimated to approximately SEK 365m before tax that will be reported in the second quarter of 2017.
“The impairment of Cloetta Italy recognizes a challenging business performance over time that have eventually led to this decision. However, the divestment of Cloetta Italy will enable Cloetta to reach its EBIT margin target of 14 per cent in a more focused way. The divestment will improve Cloetta’s margins and return on capital employed,” says Danko Maras, CFO of Cloetta.
The transaction is not subject to regulatory approvals and is expected to close in the third quarter of 2017.
In the interim report for Q2 2017, the Italian operations will be accounted for as assets held for sale and discontinued operation. The profit and loss account will be restated for the four quarters of 2016 and the first quarter of 2017. The financials of the discontinued operations will be presented in separate tables.
EY has been financial advisor and White & Case has been legal advisor to Cloetta.
This information constituted before the publication inside information and is such that Cloetta AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted, by the below contact person, for publication on 6 July 2017 at 08.30 am CET.
Source: Cloetta
Danone has appointed Carla Hilhorst to the newly created position of senior vice president of research and innovation categories and zones, as the company looks to make science the heart of its business. Hilhorst, who brings over 30 years of experience in research and innovation, will report directly to Isabelle Esser, Danone’s chief research, innovation, quality and food safety officer.
The move, part of Pernod Ricard’s strategy to enhance its premiumisation efforts, will allow the company to focus more resources on its portfolio of premium international spirits and champagne brands that drive the growth of its business. This decision aligns with the company’s commitment to delivering sustainable value for shareholders, employees, clients and partners.
Schai – who is the current CEO of Swiss chocolate company Lindt & Sprüngli’s Australian operation – has previously worked with Aryzta from 2015-2018, where he served in roles including managing director for Asia Pacific and global strategic business lead (McDonald’s). The fast-food giant McDonald’s is one of Aryzta’s significant clients.
