US: Grupo Nacional de Chocolates to buy cookie firm Fehr Foods
Grupo Nacional de Chocolateswill acquire Fehr Foods for US$84m
South American food giant Grupo Nacional de Chocolates is to acquire US cookie manufacturer Fehr Foods for US$84m.
Grupo Nacional de Chocolates said yesterday (23 September) that the acquisition is a "positive step" for the company and that it will continue to develop the Fehr business further.
Additionally, the firm said that Fehr's proximity to centres of wheat production, a major raw material of the biscuit business, will bring "major economies" and allow it to develop its supply chain to Colombia and Costa Rica.
Fehr produces and markets cookies through two production platforms located in Texas and Oklahoma. Products are sold under the brand names Lil 'Dutch Maid, Sun Valley and Tru-Blu, which are available in 43 US states, Mexico and Panama.
The agreed sale price is subject to Fehr's operating performance for the current fiscal year. If set targets are not achieved, there will be a discount of up to $4m.
To finance the transaction, Grupo Nacional de Chocolates has used its own resources and bank loans secured by a number of its subsidiaries.
The closing date is expected to be in October.
- Focus: Nestle CEO plan to balance sales, earnings
- Does Kraft Heinz want to swallow Unilever whole?
- Will Kellogg's DSD exit help it grow in US snacks?
- Comment: Meal kits in US - don't believe the hype
- Is Mondelez's margin target hurting sales?
- Nestle plans restructuring as 2016 profit misses
- Danone eyes efficiency, agility with new structure
- Kraft Heinz pursuing Unilever in takeover move
- Kraft Heinz returns to organic growth, ups margins
- Aryzta CEO, CFO resign amid strategic review