UK: Cadbury sells Butterkist maker Monkhill

By: just-food.com | 18 January 2008

Cadbury Schweppes has finally agreed to sell its Monkhill business to UK firm Tangerine Confectionery.

Cadbury, the world's largest confectioner, said today (18 January) that it had agreed a GBP58m (US$114m) deal with Tangerine, which is owned by private equity group Close Growth Capital.

It emerged last summer that Tangerine was eyeing the Monkhill business and speculation of a deal has reappeared in recent weeks.

Cadbury had first announced plans to sell Monkhill in 2006 but a fire at the popcorn production facility held back the sale.

Monkill, which makes brands including Butterkist popcorn, is expecting to post revenue of around GBP76m for 2007. Earnings, on a pro forma basis, are forecast to be GBP6.7m.

Sectors: Confectionery

Companies: Cadbury