UK confectionery firm Glisten has announced that it has acquired the entire issued share capital of jelly-bean maker F. Fravigar Ltd, from the Fravigar family, for a total of £6.5m (US$11.8m).
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Fravigar, based in Skegness, Lincolnshire, manufactures a wide range of confectionery including wine gums, fruit pastilles and jelly beans. It also produces a range of traditional boiled sweets, toffees and fudge for the major multiples and specialist retailers. The company had pre-tax profits of £1.19m in 2002 on sales of £5.86m.
Fravigar, which employs around 100 full-time and seasonal employees, is to become a wholly owned subsidiary of Glisten.
Glisten added that it is trading in line with expectations and sales through the Christmas period were in line with budgets. Total sales in the six months ended 31 December 2003 were 11% ahead of the same period last year, while like-for-like sales, excluding sales of Sunya which was acquired in October 2003, are 7% ahead.
“The acquisition of Fravigar offers Glisten a significant opportunity to leverage the customer and product offerings of both companies as there is currently very little overlap in either,” said Glisten chairman Jeremy Hamer.
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By GlobalData“With considerable spare manufacturing capacity at Fravigar, increased group buying power and new product development potential at both sites, this acquisition creates the opportunity to generate considerable earnings per share growth over the longer term. Coupled with the bolt-on of Sunya, and the broadening of our manufacturing capability in Blackburn, we remain very optimistic about the group’s growth prospects,” Hamer added.
