Fort Lauderdale, Fla.-based BBX Capital Corp. has acquired specialty candy retail chain IT'SUGAR for $57 million, the holding company announced Monday.
Headquartered in Deerfield Beach, Fla., IT'SUGAR has 95 locations in 26 states and Washington, D.C. During the the last 12 months ending April 30, IT'SUGAR generated net revenues of $78.4 million and adjusted earnings before interest, tax, depreciation and amortization of $6.8 million.
BBX Capital's investment in IT'SUGAR represents 93 percent of IT'SUGAR's membership interests. Jeff Rubin, IT'SUGAR's founder and ceo, will remain in his current position and continue to hold a meaningful membership interest.
"I am very excited for IT'SUGAR to join the BBX family of companies,” Rubin says. “IT'SUGAR will benefit from the industry knowledge and resources of BBX Capital to support our vision for growth.”
IT'SUGAR will operate within BBX Sweet Holdings, a wholly-owned subsidiary of BBX Capital. The acquisition will expand the BBX Capital’s retail confectionary footprint, which includes Hoffman's Chocolates, to more than 100 locations.
BBX Sweet Holdings' wholesale and retail annual total revenues for 2017 are anticipated to total between $110 million and $115 million. This acquisition further solidifies BBX Sweet Holdings as a leading player in the confectionery industry, BBX Capital said in a news release. In addition, BBX Capital currently plans to further expand IT'SUGAR by opening new retail locations in high-traffic, leisure locations.
"We are pleased to announce our investment in IT'SUGAR and believe the business is an excellent fit with the growth strategy of BBX Sweet Holdings," says Jarett Levan, president of BBX Capital. "IT'SUGAR has had great success expanding its presence across the United States as a modern day candy playground, and we are very pleased to partner with Jeff Rubin and the IT'SUGAR management team to support continued expansion of its retail footprint and grow the brand in other channels."
In addition to Hoffman's Chocolates, BBX Sweet Holdings owns six nationally recognized brands such as Anastasia Confections, Droga Chocolates, Helen Grace Chocolates, Kencraft Candy, The Toffee Box and Williams & Bennett.
In 2016, BBX Sweet Holdings created Las Olas Confections and Snacks, a division designed to manufacture, market and distribute the company’s wholesale portfolio of chocolate and confectionery brands. The new division operates two SQF-certified manufacturing facilities — one in American Fork, Utah and the other in Orlando, Fla.