- Barry Callebaut AG decides to divest its U.S. sugar-candy subsidiary Brach’s in order to focus exclusively on the chocolate business
- New owner, Farley’s & Sathers, is a leading non-chocolate candy maker
Barry Callebaut AG, the world’s leading manufacturer of high-quality cocoa and chocolate products, today announced its intention to sell its U.S. consumer confectionery business Brach’s to Farley’s & Sathers Candy Company Inc. The sale will include all of the business and all assets of Brach’s and its affiliates, including three factories in Chattanooga (Tennessee, U.S.A.), Winona (Minnesota, U.S.A.) and Vernell (Mexico). The two parties expect the transaction to close latest by end of November 2007. They agreed not to disclose any financial details of the transaction.
Brach’s, headquartered in Dallas (Texas, U.S.A.), has annual gross sales of about USD 270 million, with sugar candy accounting for around 75% and chocolate products making up around 25%. In Barry Callebaut’s annual report for fiscal year 2006/07, which closed on August 31, 2007, Brach’s will be classified as discontinued business. The Group’s figures for fiscal year 2005/06 will be restated accordingly.
Farley’s & Sathers manufactures and distributes quality confections and snacks to all classes of trade in the United States. As a portfolio company of Catterton Partners, Farley’s & Sathers has developed its business both through internal growth and through the acquisition of confectionery brands, including the Heide business from Hershey and the Trolli business from Wrigley. Farley’s & Sathers is headquartered in Round Lake (Minnesota, U.S.A.). The company’s success in the industry, experience with acquisitions and significant capital resources have established Farley’s & Sathers as a leading non-chocolate candy business.
Patrick De Maeseneire, CEO of Barry Callebaut, said: “We are very pleased that we have found an optimal new owner for Brach’s in Farley’s & Sathers that, based on its industrial expertise, will be able to further develop the Brach’s brand and to secure a great future for the Brach’s people. We acquired Brach’s because we wanted to get access to the large U.S. retailers and manufacture private label chocolate for the U.S. market. However the market for private label products in the U.S. has not developed in the same way as in Europe. Therefore we decided we should concentrate on other priorities like outsourcing and geographical expansion.”
"We are very pleased to be adding Brach’s to Farley's & Sathers Candy Company," said Dennis Nemeth, President of Farley's & Sathers Candy Company, Inc. “Brach’s is a well-established brand and its products are highly regarded. This addition clearly marks our continued commitment to the candy business, and gives us additional brands with long traditions of quality that perfectly fit our long-term strategy. In addition to broadening our current portfolio of brands, this acquisition will allow opportunities to increase manufacturing capacity."
Farley’s & Sathers Candy Company, Inc.
Farley's & Sathers Candy Company, Inc. is a leading manufacturer and distributor of quality confectionery and gum products. A portfolio company of Catterton Partners, Farley's & Sathers Candy Company, Inc. manufactures and distributes a variety of brands including FARLEY’S®, SATHERS®, HEIDE®, JUJYFRUITS®, NOW AND LATER®, INTENSE FRUIT CHEWS®, SUPER BUBBLE®, RAIN-BLO®, FRUIT STRIPE®, HOT DOG!®, and CHUCKLES®.
Catterton Partners is one of the largest private equity firms in the U.S., with over USD 2 billion of equity capital, focusing on providing growth equity capital in consumer industries. For more information regarding Catterton Partners, please visit www.cpequity.com. For more information regarding Farley’s & Sathers Candy Company, Inc., please visit www.farleysandsathers.com.
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With annual sales of more than CHF 4 billion for fiscal year 2005/06, Zurich-based Barry Callebaut is the world’s leading manufacturer of high-quality cocoa and chocolate products – from the cocoa bean to the finished product on the store shelf. Barry Callebaut is present in 23 countries, operates more than 30 production facilities and employs approximately 8,000 people. The company serves the entire food industry, from food manufacturers to professional users of chocolate (such as chocolatiers, pastry chefs or bakers), to global retailers. It also provides a comprehensive range of services in the fields of product development, processing, training and marketing.