FDBusiness.com

Raisio has acquired Czech confectionery manufacturer Candy Plus for an enterprise value of Eur20.5 million. The acquisition complements Raisio’s existing confectionery activities in the UK trading as Big Bear Confectionery.

Founded in 2000, Candy Plus is owned by private investors. In 2011, the company’s net sales totalled Eur23.3 million, EBITDA was Eur2.9 million and EBIT was Eur2.1 million. Assets on 31 December 2011 totalled Eur17.6 million, liabilities Eur9.1 million and equity Eur8.5 million. The company’s two production sites are located in the eastern part of the country, in Rohatec and Petrvald u Karvine. Candy Plus employs more than 400 people all of whom will continue as Raisio’s serving employees.

Paul Simmonds, Vice President of Raisio’s Consumer Brands unit, says that Candy Plus is a profitable and growing business which has a wide customer base across east and westEuropeand other parts of the world. “This will provide Raisio with interesting growth opportunities,” he adds.

The Candy Plus range focuses on the faster growing product categories of soft-eating and higher-fruit jellies, liquorice and functional confectionery. Candy Plus has strong consumer brands in its home market, the Czech Republic, including Juicee Gummee, Fundy, Pedro and Cuksy. Branded products account for about 40% of net sales.

With the acquisition, Raisio will be able to make better use of synergies in its confectionery operations, which will be seen in increased flexibility and improved cost-effectiveness.

Candy Plus is being integrated into Raisio’s Consumer Brands unit. The acquisition is expected to further improve profitability of the Brands Division.