“Cloetta will now be able to offer consumers a new Munchy Moment with an established brand in the growing nuts segment,” said Bengt Baron, CEO of Cloetta. “Cloetta’s strong route to market combined with the market growth in the category should facilitate significant growth going forward.”
“I am excited about the future of Nutisal,” said Mohamed Rifai, CEO of Alrifai International Holding. “I am confident that we have placed the business and the brand in safe hands. This is a fantastic opportunity and I am convinced that Cloetta will ensure the continued growth of Nutisal in Sweden and beyond.”
The acquisition will support profitable growth by expanding Cloetta into adjacent categories, but will generate only limited synergies within existing sales, administration and logistics.
The acquisition is expected to generate an additional growth in sales of approximately 1% on a Group level in the next few years. It will require exceptional restructuring cost of approximately SEK 10m in 2014. The acquisition will, in 2014, have a very limited effect on Cloetta’s operating profit as the company is in a growth phase. However, the acquisition is expected to be EPS accretive in 2015.
The upfront purchase price is SEK 110m in cash with a potential earn-out based on certain targets related to the results of Nutisal for 2016. The earn-out is maximum SEK 300m in cash. The acquisition will be financed through Cloetta’s existing credit facilities.
The acquisition is due to be completed by early January 2014.
© FoodBev Media Ltd 2024