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Valeo Foods acquires Raisio’s confectionery business

FBR Staff Writer Published 02 January 2018

Irish food and beverage company Valeo Foods has completed its acquisition of Raisio’s confectionery business at enterprise value of €100m.

The equity value of the transaction paid by Valeo Foods was €77m.

With the deal, Valeo Foods has added six production plants of the confectionery business located in the UK and Czech Republic.

The company has also become the new owner of Raisio’s confectionery brands that include Poppets, Just, XXX Mints, Pedro and Fox’s Glacier Mints.

Raisio's divested confectionery business also manufactures confectionery products for the Finnish company’s retail and industrial customers. Its net sales during January-September 2017 were €71.3m.

Valeo said the acquired confectionery business has significant and growing private label, contract manufacturing and food ingredient operations.

The company had earlier stated that the deal aligns with its strategic focus while providing significant opportunities for future growth.

The former confectionery business of Raisio caters to an established customer base in a majority of European markets, Asia, Australasia and North America, stated the Irish firm. Included in the customer base are several top international food manufacturers and grocery retailers.

Following the completion of the sale, nearly 1,000 employees of the confectionery business have been transferred to Valeo Foods.

Founded in 2010, Valeo is the owner of brands such as Jacob's, Rowse and Balconi.

Raisio revealed its plans to use the proceeds from the sale to make acquisitions that strategically fit its core business.

Raisio had previously said that it will record divestment loss of about €38m in connection with the sale of the confectionery business.

Image: Through the deal with Raisio, Valeo has added confectionery brands such as Pedro, Poppets, Just, XXX Mints, and Fox’s Glacier Mints. Photo: courtesy of Raisio Plc.