Following the merger with Leaf, Cloetta operates in Belgium through a Belgian distribution company, which primarily distributes brands that are not owned by Cloetta.
The divestment of the distribution company is part of Cloetta’s strategy to focus on its core brands. Katjes will continue to sell and distribute the chewing gum brand Sportlife and other Cloetta owned brands in Belgium.
In 2011, Cloetta’s distribution organisation in Belgium had approximately 50 employees, and sales of approximately SEK 200m, whereof approximately SEK 40m are Cloetta owned brands.
The divestment of the distribution company will have a limited effect on Cloetta’s future operating profit, and the purchase price is insignificant compared to the market value of Cloetta, according to the company.
The divestment will incur a non-cash cost of approximately SEK 30m during the first quarter of 2012. However, the transaction will initially be cash flow positive.
Source: Cloetta
© FoodBev Media Ltd 2024