Cloetta acquires The Jelly Bean Factory confectionery brand

Cloetta has acquired Aran Candy Ltd and the brand The Jelly Bean Factory – an Irish company producing and selling gourmet Jelly Beans worldwide.

"Jelly Beans are known as a product to consumers worldwide, and the acquisition of The Jelly Bean Factory will support Cloetta's profitable growth by adding an offering to the Munchy Moments within the sugar confectionery category," said Bengt Baron, CEO of Cloetta. "The Jelly Bean Factory has shown strong growth over the last few years and the acquisition will significantly strengthen Cloetta's position in the UK market. In addition, we intend to roll out the products in our current core markets over time."

Initially, Cloetta has acquired 75% of the shares of Aran Candy Ltd. The remaining 25% will be acquired in 2016. The upfront purchase price is SEK 140m in cash and the remaining shares will be acquired based on 2015 result targets. The acquisition will be financed utilising Cloetta's existing credit facilities. Restructuring costs are estimated to be approximately SEK 15m in 2014, whereas cost synergies will be very limited.

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