Raisio has divested its confectionery business in the UK and Czech Republic to Valeo Foods. The enterprise value of the transaction is €100 million, with the equity value of the deal paid by the buyer €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,” said 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 €38 million. After completion of the transaction, Raisio estimates its equity ratio to be around 75% and its balance sheet to total €370 million.
In January-September 2017, net sales for Raisio’s confectionery business totalled €71.3 million and EBIT was €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 brands, many of them household names in their markets. The Group has annual sales of over €700 million.
Valeo Foods’ CEO Seamus Kearney said: “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.”