Cloetta to Divest Italian Operations
Cloetta, the Swedish confectionery group, has agreed to sell its Italian business, Cloetta Italy, to Katjes International, the German sugar confectionery company. The deal has enterprise value of approximately SEK450 million (€47 million). The proceeds will generate a positive net cash effect of approximately SEK415 million.
“This is a very good solution for all parties and follows Cloetta’s strategy to focus more on its business in North-Western Europe including the recently acquired Candyking business,” says Henri de Sauvage-Nolting, chief executve of Cloetta.
Cloetta Italy operates four factories and produces and sells brands such as Sperlari, Saila, Dietor, Galatine and Dietorelle. In 2016, Cloetta Italy had sales of SEK 745 million.
The deal includes the complete Italian commercial organization, the four production units and all Italian brands. The divestment will result in an impairment estimated to approximately SEK365 million before tax that will be reported in the second quarter of 2017.
The transaction is not subject to regulatory approvals and is expected to close in the third quarter of 2017.
