Bayn Europe, the Sweden-based ingredients group, has snapped up another confectionery brand, adding low-sugar candy supplier Tweek to its recent move for healthy snacks business Pändy Foods.
A cash-and-shares deal for Tweek has seen Bayn Europe vice president and M&A manager Simon Petrén add what he described as a “perfect strategic fit” to the business.
Bayn Europe develops solutions that replace sugar, glucose syrup and other bulk sweeteners that have high energy content with sweetened fibers – a composition of dietary fibre, high-intensity sweeteners and other ingredients.
The company is also adding branded, consumer-facing companies to its portfolio.
In January, the group acquired another Swedish business, Pändy Foods, which offers healthier snacks and confectionery.
Tweek, founded in 2016, markets confectionery with a lower than usual amount of sugar. The company replaces sugar with fibre instead of maltitol, which is a common substitute ingredient.
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The firm had initial success through a pick-and-mix range at Swedish retailer Coop. It now also offers packaged confectionery.
Announcing the deal for Tweek, Petrén said Bayn Europe was now “a leading player for sugar-reduced candy products in Europe”.
Tweek and Pändy “complement each other very well with their brand positionings”, Petrén added. “Historically, Tweek has been very successful in establishing itself in the grocery trade where Pändy has instead focused on e-commerce. Together, we see many significant synergies with increased cross-channel sales in the channel segments and cost efficiency from merged systems and supply chain functions. With the addition of Tweek’s development team, we have a good opportunity to accelerate our research and development of the next generation of sweetened fibres.”
Bayn Europe is paying SEK45m (US$4.8m), plus an earn-out of 1.5m of its own shares, for Tweek. The purchase price will be paid with more than 3.6m newly-issued shares in Bayn Europe and cash.
Tweek has forecast net income “for the next 12 months” of SEK61m and EBIT of SEK7.8m, Bayn Europe said.
Åsa Rosén and Lennart Arvidsson, Tweek’s founders, will continue to run the company, Bayn Europe added.
In a joint statement, Rosén and Arvidsson said: “Since the founding of Tweek, our team is still very enthusiastic about the tremendous opportunities offered in the market for healthier sweets. We look forward to working with the Bayn team and together being able to take our products and brand to the next level. The companies naturally fit each other with a strong entrepreneurial culture and with a great passion for quality and innovation. Joining the Bayn family is a natural next step in our mission to continue to build and develop the market’s leading brand of well tasting and better-for-you sweets.”