The confectioner paid SEK 110m ($16.8m) upfront for Nutisal but has committed to potential future payments of up to SEK 300m ($45.8m) based on Nutisal’s 2016 targets (an earn-out). The purchase is due to be completed by early January 2014.
The move from Cloetta forms part of the confectioner’s strategy to side-step into new, in-between meal categories and the firm is not afraid of its ability to compete in the snacks arena, according to Jacob Broberg, senior vice president of corporate communications and investor relations.
“We have acquired the number two nut brand in Sweden, and it has strong positions elsewhere in Europe,” Broberg told BakeryandSnacks.com.
“We have bought the brand, full production facilities and secured the sourcing of the nuts through this acquisition. We are confident that with our experience of rolling out brands and a fully-fledged sales organization, we can do well in snacks,” he said.
Nutisal has annual sales of around SEK 200 ($30.5m) and Cloetta plans to grow this by SEK 50m ($7.6m) each year for the next three years, Broberg said.
A future in snacks…
The acquisition represents Cloetta’s first action to broaden its portfolio as planned, he explained.
“For us, it’s a very, very natural move… We want to be something more than just confectionery. We have defined ourselves as being everything in-between main meals – that being branded, packaged goods based on impulse,” he said.
Broberg said there could be more acquisitions in adjacent categories to come but its core would remain in confectionery.