Finnish food/feed firm Raisio sells off confectionery business
Irish diversified food manufacturer Valeo Foods acquires brands, plants in U.K., Czech Republic for €100 million
January 3, 2018
Helsinki-based Raisio sold its confectionery business, which includes popular brands such as Poppets, Fox’s, XXX, Payne's Just Brazils and Pedro, as well as private-label and contract-manufactured products, for €100 million ($120 million) to Valeo Foods Ltd. on Dec. 29, 2017. The deal also includes six production plants in the U.K. and Czech Republic.
“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,” says the Group’s President and CEO Pekka Kuusniemi. “Together with our already strong balance sheet, the proceeds from the deal allow extensive acquisitions that strategically fit our core business.”
In January-September 2017, net sales for Raisio’s confectionery business totaled €71.3 million ($85.64 million), while its EBIT stood at €6.4 million ($7.9 million). The confectionery business employs 1,000 workers, who will be transferred to Valeo Foods. Raisio's group sales in 2016 were €436 million ($523.68 million).
“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,” adds Valeo Foods’ CEO Seamus Kearney says.
Dublin-based Valeo Foods owns a fast-growing portfolio of category leading brands, many of them iconic household names in their markets. Its annual sales topped €700 million ($841 million).