Cloetta acquires Candyking

”The acquisition of Candyking will significantly strengthen Cloetta’s position in Denmark, Norway and the United Kingdom. Cloetta will be able to develop the Candyking brand and product offering, in order to offer an attractive customer and consumer experience. The acquisition will also strengthen our position in natural snacks with the Parrot brand. In addition, there are substantial cost synergies that make the acquisition attractive,” said Danko Maras, CFO and outgoing CEO a.i., of Cloetta.

Candyking offers stores a complete concept in pick and mix candy including products, displays and accompanying store and logistic services. Candyking itself does not manufacture any products, instead they purchases products from different suppliers. The company currently supplies approx. 8,000 retail outlets in seven countries. Sweden, UK, Norway and Denmark are the largest markets. Other markets are Finland, Ireland and Poland. In total Candyking have approx. 370 employees. Candyking’s total sales (including Danish tax) amounted to approx. € 137.3 m on a rolling twelve month basis per the third quarter of 2016. Underlying EBITDA was approx. € 7.4 m and underlying EBIT approx. € 3.2 m.

The initial purchase price amounts to € 34.4 m on a cash and debt free basis with a potential additional purchase price of maximum € 23.8 m based on the result of Cloetta’s and Candyking’s combined sales volume of pick and mix in confectionary and natural snacks in the Nordic countries, the United Kingdom and Poland during 2018. The seller of the shares is Candyking’s CEO, Dani Evanoff. The majority of the initial purchase price and the potential additional purchase price will be allocated to the holders of Candyking’s € 79.2 m bond loan.