Global chocolatier Ferrero is in discussions with United Biscuits owner Pladis over the acquisition of its Belgian luxury biscuits business Delacre.
The Grocer understands Pladis, created last month by combining the global confectionery assets of Yildiz Holding, is close to sealing a deal with Ferrero for the former UB-owned business.
Industry sources said the move chimed with the Pladis strategy to focus on growing core brands, including McVitie’s and Godiva Chocolatier in key markets, notably North America. Pladis and Ferrero declined to comment.
Ferrero, which recently acquired Thorntons in the UK, is thought to be keen to expand its product range and bring confectionery-based innovation to the biscuit sector, following the path trodden by Cadbury owner Mondelez.
Regulatory documents filed in Belgium show Delacre, established in the 1870s, had annual revenues of €132.5m in the year to 31 December 2015, rising from €121.9m in 2014, and generated an annual profit of €2.6m vs a €1.4m loss in 2014.
Belgium accounted for €37.5m of sales, with the remaining €94.9m in the EU. The brand is particularly well known in France, though it also supplies own-label goods to retailers such as M&S.
Its product range includes Cigarettes Russes, Marquisettes and Biarritz as well as fine biscuit assortments including Tea Time and Namur.
Delacre is a purveyor of biscuits to the Belgian Royal House, having first been appointed in 1879 and again in November 2005. Its product range includes Cigarettes Russes, Marquisettes and Biarritz as well as fine biscuits assortments including Tea Time and Namur.
United Biscuits bought Delacre from the Campbell Soup Company in 1998 for £78m.
London-based Pladis was launched last month by merging Yildiz-owned Godiva Chocolatier, UB, Ulker and DeMet’s Candy businesses. Pladis boasts combined revenues of £3.6bn and mooted plans to float on the London Stock exchange by as early as 2020.
Ferrero has been acquisitive of late, expanding into the UK chocolate retail sector by buying Thortons in August 2015 for £112m. The transaction was Ferrero’s first branded acquisition in its more than 60 year history.
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