Barry Callebaut announces $38.8M settlement with Petra Foods
Agreement includes cash payment, cocoa supply extension
Barry Callebaut has finally come to an agreement with Petra Foods on their deal to buy Petra’s cocoa ingredients division.
It’s been about two years since the two companies headed into arbitration over Barry Callebaut’s acquisition from Petra Foods. And now they’ve settled their dispute regarding the purchase price for the cocoa ingredients division, which Barry Callebaut had acquired from Petra Foods in 2013.
As a result of the settlement, Petra Foods has paid Barry Callebaut a lump sum of $38.8 million in cash, Barry Callebaut says in a media release.
And the parties also agreed to extend the terms of the cocoa supply agreement until end of June 2020, which means Barry Callebaut will supply Petra Foods' branded consumer division with cocoa products for about five years.
The negotiations were conducted amicably and outside the arbitration proceedings commenced by Petra Foods in December 2013, which proceedings are now discontinued.
The dispute did not have any impact on the transfer of the Cocoa Ingredients Division to Barry Callebaut, which had been taken over entirely as of the closing of the transaction and was subsequently integrated into the Barry Callebaut Group’s cocoa business.
The parties agreed to not disclose any further details of the settlement.
When the deal was first announced back in 2012, it was believed that it would make Barry Callebaut the world’s largest cocoa processor, boosting Barry Callebaut's sales volume in the Asia and Latin America markets by 65 percent.
Barry Callebaut also said at the time that it would allow the company to create a sourcing base in Asia. Prior to the deal, Barry Callebaut’s only sourcing base was in West Africa.
Petra Foods' Cocoa Ingredients Division was the largest cocoa ingredients supplier in Asia back in 2012, with sales revenue of approximately $1.3 billion in fiscal year 2011 and about 1,700 employees.