Cloetta to acquire Nutisal – a leading company within dry roasted nuts
| Source:Cloetta AB
Cloetta has signed an agreement to acquire Alrifai Nutisal AB, a leading Swedish
company within dry roasted nuts. The acquisition is in line with Cloettas’s
strategy to broaden its product portfolio within Munchy Moments.
“I am very happy to announce a significant step in to a new category in our home
markets with the acquisition of Nutisal. Cloetta will now be able to offer
consumers a new Munchy Moment with an established brand in the growing nuts
segment. Cloetta’s strong route to market combined with the market growth in the
category should facilitate significant growth going forward”, says Bengt Baron,
CEO of Cloetta.
“I am excited about the future of Nutisal. I am confident that we have placed
the business and the brand in safe hands. This is a fantastic opportunity, and I
am convinced that Cloetta will ensure the continued growth of Nutisal in Sweden
and beyond”, says Mohamed Rifai, CEO of Alrifai International Holding Ltd.
The acquisition will support profitable growth by expanding Cloetta into
adjacent categories, but will generate only limited synergies within existing
sales, administration and logistics.
The acquisition is expected to generate an additional growth in sales of
approximately 1 per cent on a Group level in the next few years. It will require
exceptional restructuring cost of approximately SEK 10m in 2014. The acquisition
will, in 2014, have a very limited effect on Cloetta’s operating profit as the
company is in a growth phase. However, the acquisition is expected to be EPS
accretive in 2015.
The upfront purchase price is SEK 110m in cash with a potential earn-out based
on certain targets related to the results of Nutisal for 2016. The earn out is
maximum SEK 300m in cash. The acquisition will be financed through Cloetta's
existing credit facilities.
Alrifai Nutisal AB produces and sells dry roasted nuts under the brand Nutisal,
primarily in the branded bags segment. It was established in Sweden in 2007 and
has yearly sales of about SEK 200m, with about 60 employees. Today, Sweden
accounts for about half of the sales, but Nutisal is also sold in Denmark,
Norway, Germany, UK and the Benelux countries. Nutisal holds a number two
position in the branded nuts market in Sweden. Nutisal is currently distributed
through an own sales force in Sweden and through distributors on the other
Nutisal nuts are dry roasted, using unique knowledge and technology. The dry
roasting enhances the ‘real’ taste of nuts and offers a unique ‘crisp’ to the
products. All products are produced in a new (established in 2007) factory in
The seller is Arval Holding Ltd, a company controlled by the Al Rifai Group, a
leading Lebanese nuts company dating back to 1948. Al Rifai Group is by 35%
owned by Qatar First Bank.
The acquisition is due to be completed by early January 2014.
The information contained in this press release is such that Cloetta is required
to disclose pursuant to the Swedish Financial Instruments Trading Act and/or the
Swedish Securities Markets Act. The information was submitted for publication on
9 December 2013 at 08:00 a.m. CET.
Jacob Broberg, SVP Corporate Communications & Investor Relations, 46 70 190 00
Cloetta, founded in 1862, is a leading confectionary company in the Nordic
region, the Netherlands, and Italy. In total, Cloetta products are sold in more
than 50 countries worldwide. Cloetta owns some of the strongest brands on the
market, such as Läkerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila,
Red Band and Sperlari. Cloetta has 10 production units in five countries.
Cloetta’s class B-shares are traded on NASDAQ OMX Stockholm. More information
about Cloetta is available on www.cloetta.com
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