Glisten management has backed Raisios bid

Glisten management has backed Raisio's bid

Raisio, the Finnish food group behind the Benecol brand, has made a EUR22.8m (US$31.4m) bid to buy UK snack maker Glisten.

The Glisten board has recommended the offer to its shareholders, with the company's chairman David Wallis arguing the bid gives "a very good premium" to investors.

The offer values Glisten at EUR1.61 a share, which equates to around 62% more than the UK firm's share price when the market closed yesterday (9 February).

Raisio said this morning that it had "significant support" from Glisten's shareholders and senior management for its offer. A meeting of Glisten shareholders to vote on the bid will be held on 12 March.

Glisten CEO Paul Simmonds said combining with Raisio was "the right path for the business to take now".

Simmonds said: "The fit in terms of ambitions, skills and capabilities is excellent and both parties will bring something to the other, not least in access to market, branding, and product development. We look forward to working within the Raisio team to develop Glisten's position as one of the best snacking businesses in Europe."

Raisio CEO Matti Rihko said Glisten "fits extremely well" with his company's business and growth strategy.

"The acquisition provides both companies good opportunities for growth in the UK market as well as in Raisio's existing market areas by combining synergies of brands and products," Rihko said.

Leeds-based Glisten, which employs around 650 staff, sells the Fruitus and Dormen's confectionery and snacks brands.

News of Raisio's move for Glisten boosted the Finnish firm's stock. Raisio shares were up 4.3% at EUR2.93 at 11:14 local time.