Finnish company Raisio has sold its confectionery business, which includes the Poppets and Fox’s brands, to Valeo Foods Group for €100 million.
Raisio’s confectionery operations consist of six production plants in the UK and the Czech Republic, all of which will be transferred to become part of Valeo. Other brands include XXX, Just and Pedro.
Between January and September 2017, net sales of the unit were €71.3 million. It has 1,300 employees who will be transferred to Valeo.
Raisio group president Pekka Kuusniemi said: “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.
“Together with our already strong balance sheet, the proceeds from the deal allow extensive acquisitions that strategically fit our core business.”
Valeo Foods has annual sales of over €700 million and its portfolio of brands includes Jacob’s and Rowse Honey.
Seamus Kearney, Valeo CEO, said: “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.”
© FoodBev Media Ltd 2019
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