Fazer carries out its tender offer to shareholders in Cloetta Fazer

The division of Cloetta Fazer (under name change to Fazer Konfektyr Service AB) has now entered the final phase. On 16 June 2008 Fazer announced a tender offer to the shareholders in Cloetta Fazer following an agreement between Cloetta Fazer’s former two principal shareholders – Fazer and Malfors Promotor.
Within the framework of the offer, the shareholders in Fazer Konfektyr have the opportunity to tender their shares in exchange for cash and shares. In brief, Fazer offers SEK 202 in cash and 0.92 class B shares in Cloetta AB as consideration for each class B share in Fazer Konfektyr. As soon as the conditions for delisting have been met, Fazer intends to take measures to delist the shares in Fazer Konfektyr.


In connection with the division of Cloetta Fazer, Fazer has established the new Fazer Confectionery division to take over responsibility for the Fazer brands. The Cloetta-related activities previously conducted within Cloetta Fazer will continue in new Cloetta, which is estimated to commence trading on NASDAQ OMX First North on or about 8 December 2008.


Fazer Konfektyr had total pro forma sales in 2007 of approximately SEK 2.4 bn (EUR 257 m). Fazer Konfektyr’s largest market is Finland, where it has a market share of around 42 per cent. The total number of employees in Fazer Konfektyr is 1,000. The division of Cloetta Fazer will mainly affect business activities in Sweden. During the autumn Fazer Konfektyr has built up a sales and marketing company with some 50 employees at year-end. For the current financial year, Fazer Konfektyr’s Swedish operations are expected to post net sales of approximately SEK 400 m. Fazer Konfektyr has a market share of around 7 per cent in Sweden, where the top-selling brands are Dumle, Tutti Frutti, Geisha and Karl Fazer.


Following the division, Cloetta Fazer’s Managing Director and CEO Jesper Åberg has been appointed as Managing Director of Fazer Konfektyr. The Finnish subsidiary’s operations will continue under the supervision of current Managing Director Tom Lindblad, while Sirkku Erlandsson has been appointed Managing Director of Fazer Konfektyr’s Swedish subsidiary. “Sweden is Fazer’s second home market. We have a strong foothold among Swedish consumers and conduct operations throughout the country. Aside from developing Fazer’s very important confectionery brands under our own management, we are investing ambitiously in our Swedish bakery business and are also a major player in the meal services market here,” says Fazer’s CEO Karsten Slotte.


The Fazer Group, with its Fazer Bakeries and Fazer Amica divisions, already has extensive operations in Sweden. Fazer Bakeries is currently in the process of acquiring Lantmännen’s fresh bread business, a transaction that is pending approval from the Swedish Competition Authority. At present, Fazer has more than 2,400 employees and annual sales of around SEK 2.1 bn (around EUR 224 m) in Sweden.


Fazer Group originates from a family business that was founded in 1891 when Karl Fazer opened his first bakery and café in Helsinki. Today the Group offers meal services, bakery and confectionery products and operates in a total of eight countries. Its business is based an a passion for customer satisfaction, quality excellence and team spirit. Fazer Group operates in four divisions which are all committed to creating taste sensations in their respective markets: Fazer Amica, Fazer Bakeries, Fazer Confectionery and Fazer Russia. Fazer Group‘s turnover for 2007 was over 1.2 bn euros. The group employs ca. 16,000 people.


Fazer Amica is a leading contract catering company serving in the Nordic and the Baltic countries, offering its customers delicious food and individually tailored service solutions. The company operates in the Nordic countries, Estonia, Latvia and Russia. Fazer Bakeries offers fresh and tasty bakery products and operates in Finland, Sweden, Russia, Estonia, Latvia and Lithuania. Fazer Confectionery is Finland’s leading provider of confectionery products and a strong player in the Baltic region. Fazer’s three confectionery factories are located in Finland: chocolate products are made in Vantaa, sugar confectionery in Lappeenranta and chewing gum in Karkkila. Fazer Russia is responsible for Fazer’s bakery operations in Russia and is one of the country’s leading providers of baked goods.