Raisio has agreed to divest its confectionery business to Valeo Foods Ltd. Raisio’s confectionery operations in the UK and Czech Republic will be transferred to become part of Valeo Foods Group by 29 December 2017 at the latest.
The arrangement will be carried out as a share transaction and its enterprise value is EUR 100 million. Equity value of the deal paid by the buyer is EUR 77 million.
“The divestment of the confectionery business is an important strategic step for Raisio on its path towards a responsibly operating forerunner focusing on healthy foods. Together with our already strong balance sheet, the proceeds from the deal allow extensive acquisitions that strategically fit our core business,” says the Group’s President and CEO Pekka Kuusniemi.
Raisio’s divested confectionery business includes six production plants in the UK and Czech Republic, as well as the brands, of which Poppets, Fox’s, XXX, Just and Pedro are the best-known. Furthermore, the business is a significant confectionery producer for its retail and industrial customers.
For the divestment of its confectionery business, Raisio will record divestment loss of some EUR 38 million. After completion of the transaction, Raisio estimates its equity ratio to be around 75 per cent and its balance sheet to total EUR 370 million.
In January-September 2017, net sales for Raisio’s confectionery business totalled EUR 71.3 million and EBIT was EUR 6.4 million. The confectionery business has some 1,000 employees who will be transferred to Valeo Foods.
Valeo Foods owns a fast growing portfolio of category leading brands, many of them iconic household names in their markets. The Group has annual sales of over EUR 700 million. More information about Valeo Foods can be found at www.valeofoodsgroup.com.
Valeo Foods’ CEO Seamus Kearney says: “This transaction is consistent with Valeo Foods’ strategic focus and we are very excited about the opportunities to expand and grow these businesses through a combination of significant new capital and brand investment.”
Source: Raisio plc
Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.
Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.
A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.