Swedish confectionery group Cloetta has signed an agreement to sell its Italian operations to Germany’s Katjes International.
The agreement confers an enterprise value of approximately SEK 450 million (€46.5 million), while the proceeds will generate a positive net cash effect of around SEK 415 million.
Cremona-based Cloetta Italy produces and sells confectionery brands such as Sperlari, Saila, Dietor, Galatine and Dietorelle. The company operates four factories (in Cremona, Gordona, San Pietro in Casale and Silvi Marina) and last year had sales of SEK 745 million (€77 milion).
The deal includes the complete commercial operations of Cloetta Italy, the four production units and all Italian brands. The divestment will result in an impairment estimated around SEK 365 million to Cloetta's full-year financial report.
The transaction is not subject to regulatory approvals and is expected to close in the third quarter of 2017.
Focus On Northern Europe
Commenting on the agreement, Cloetta CEO Henri de Sauvage-Nolting said that it is in line with the company’s strategy to focus more on its business in North-Western Europe, including the recently acquired Candyking business.
CFO Danko Maras added that the divestment will enable Cloetta to reach its EBIT margin target of 14% in a more focused way, as well as improve margins and return on capital employed.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
