Canada-based confectionery manufacturer and distributor Regal Confections has announced the acquisition of local peer Tosuta International Sales for an undisclosed sum.
Tosuta, based in British Columbia, is an importer and distributor of gummies, sours, hard and soft candies, throat lozenges and chocolate. Its roster includes brands including Bentasil, Hi-Chew and Red Band. Tosuta is also the brand owner of Koala and Livewires.
The company, founded 43 years ago, distributes to the gas and convenience channel.
Regal manufactures peanut-free and nut-free chocolate products in Quebec under the Jean-Talon (CJT) brand, as well as private-label and licensed products in Canada and the US. It also distributes global candy and chocolate confectionery brands.
It said the acquisition strengthens its existing business in the gas and convenience market and provides entry into the throat lozenges category.
Hani Basile, president and CEO of Regal, said: “Over the past few years, [Tosuta president] Dean [MacDonald] and I have had informal discussions and we both agreed this was the right time to come together. With Tosuta and its brands in our portfolio of products, Regal will increase its presence in western Canada and we plan on expanding upon the Tosuta team’s great work on a national basis.”
MacDonald said: “For decades Tosuta has been dedicated to delivering the best quality confectionery and other fine products from around the world to the Canadian market. We selected Regal to uphold our values and foster growth for our brand partners and customers, relying on their nearly 60 years of experience in the confectionery industry.”
Last year, Regal sold a majority stake in its business to private-equity firm Clearspring Capital Partners.
Milap Choksey, principal at Clearspring, said: “We are impressed with Tosuta’s brand portfolio, market penetration, and long track record of success. This is the first acquisition since our partnership with Regal commenced late last year and we are excited to continue supporting Regal in elevating their leadership position as an independent value-added distributor with co-packing and manufacturing capabilities.”