Cadbury Schweppes Make Turkish and Romanian Acquisitions
Kandia-Excelent, which is listed on the Bucharest Stock Exchange, is the second largest confectionery company in Romania, with a 20% market share in total confectionery. It has a number 2 position in the chocolate market with a 24% share.
11/06/07 Cadbury Schweppes has acquired 93.32% of Kandia-Excelent S.A., a leading Romanian confectionery business, from Kandia NV, a private equity investment holding company managed by Meinl Bank AG. The gross assets of Kandia-Excelent at 31 December 2006 were RON153.3 million (approximately £32 million).
Kandia-Excelent, which is listed on the Bucharest Stock Exchange, is the second largest confectionery company in Romania, with a 20% market share in total confectionery. It has a number 2 position in the chocolate market with a 24% share, and a leading position in candy with a 32% share. 2007 sales are forecast to be approximately €50 million, with around two-thirds coming from chocolate and the majority of the remainder from candy. Kandia-Excelent has a single production facility in Bucharest and approximately 850 employees.
Todd Stitzer, Chief Executive Officer, said: "The purchase of Kandia-Excelent is aligned with our strategy of pursuing bolt-on acquisitions to further strengthen our confectionery platform. Kandia-Excelent has a strong position in the Romanian confectionery market, which is worth over €300 million and grew 17% last year. This acquisition gives us an exciting opportunity to further develop their leading brands and leverage their strong routes to market."
The news came shortly after Cadbury Schweppes agreed to acquire Intergum, a Turkish gum business, from the Amram family for a consideration of US$450 million (approximately £225 million) in cash and assumed debt. The acquisition, which is subject to regulatory approval by the Turkish Competition Board, is expected to complete in the third quarter of 2007.
The acquisition of Intergum is aimed at strengthening its participation in the fast-growing Turkish confectionery market, and will enhance our presence in the attractive Turkish gum market, which grew 17% last year. Cadbury Schweppes also expect to benefit from Intergum's strong capabilities, particularly in the manufacturing of value-added gum products, such as gum base and centre-filled gum, at low cost. In 2006, Intergum had a 46% share of the Turkish gum market, and had revenue of US$109 million, of which approximately 25% was from exports.
