Confectionery company Cloetta has announced the acquisition of Ireland-based Aran Candy, the owner of the Jelly Bean Factory brand, for SEK140m ($21m).
Aran Candy, established in 1998, producer and seller of gourmet Jelly Beans.
According to Cloetta, the acquisition will significantly strengthen its position in the UK.
Cloetta CEO Bengt Baron said Jelly Beans are known as a product to consumers world-wide, and the acquisition of the Jelly Bean Factory will support the company's profitable growth by adding an offering to the Munchy Moments within the sugar confectionary category.
"The Jelly Bean Factory has shown strong growth over the last 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," Baron added.
The Jelly Bean Factory produces premium gourmet Jelly Beans in 36 different natural flavors. It reported sales of about SEK100m ($15m) in 2013 with the UK as the core market.
Other key markets for the brand are the US, Canada, Middle East, Ireland and Germany.
Speaking about the deal, Aran Candy managing director Richard Cullen said, "We are very pleased to become part of the Cloetta Group. With Cloetta's focus on brands and strong routes-to-market in their core markets, I am convinced that we will be able to further strengthen and accelerate the growth of The Jelly Bean Factory brand."
Initially, Cloetta has purchased 75% of the shares of Aran Candy, with the remaining 25% to be acquired in 2016. The acquisition will be financed with Cloetta's existing credit facilities.
Image: Aran Candy is a producer and seller of gourmet Jelly Beans. Photo: courtesy of Nutdanai Apikhomboonwaroot/FreeDigitalPhotos.net.
