Australian confectioner Darrell Lea has been bought by Sydney-based firm Quadrant Private Equity for AUD 200 million ($160 million).
Quadrant has reportedly bought between 80% and 90% of the 90-year-old company which makes brands such as Rocklea Road and Little Brittle.
The firm has acquired the stake from the Quinn family, which had originally bought the brand in 2012 after it was placed into voluntary administration, leading to hundreds of jobs being cut and its retail stores closing down.
The brand’s fortunes have turned in recent years and last year its earnings nearly doubled to AUD 23 million ($18.4 million). Outgoing owner Tony Quinn said that the company has now picked up “a sizeable order from Walmart” and that there will be no job cuts upon completion of the deal.
Quadrant Private Equity chairman Chris Hadley said the firm plans to expand Darrell Lea overseas – its products are currently sold in Australia, the UK, New Zealand, the US and Canada.
“Darrell Lea is one of the most iconic consumer brands in Australia with a proud heritage of producing high-quality confectionery for over 90 years,” he said.
“We are excited to be investing in the business and believe there are significant opportunities to implement growth and strategic initiatives to enhance the brand and product in Australia and throughout the world.”
Darrell Lea CEO Tim York added: “Over the past few years, Darrell Lea has undergone a significant acceleration of growth that has built strong market position within its key segments.
“Despite our growth we have preserved the long, unique and proud heritage of the brand for quality and innovation. We believe Quadrant is the right partner to assist the team over the next phase of growth.”
Darrell Lea operates two manufacturing sites and has over 200 employees.
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