Confectionery company Tangerine will more than double its turnover when it completes a £58m deal to buy Monkhill Confectionery from Cadbury Schweppes next month.
Last June, The Grocer revealed Tangerine, the UK's largest independent confectionery manufacturer, was poised to buy Monkhill after it was put up for sale as part of Cadbury's disposal and restructuring programme.
Monkhill, which makes Butterkist popcorn, Barratt Sherbet Fountains, Jameson's chocolate confectionery and own label products for supermarkets, is expected to record a turnover of £76m this year with profits of £6.7m.
"This major acquisition will significantly enhance Tangerine, creating a business with a turnover of £150m and 1,500 employees," said Tangerine chairman Steven Joseph.
"The combined entity will have an increased selling capability and a wider product offering."
Monkhill's 850 staff, three Yorkshire factories and Derbyshire distribution centre will be retained, Joseph added.
This is the second major acquisition by Tangerine in over a year. In 2006, it bought the £15m-turnover confectionery arm of Burton's Foods, including Burton's Liquorice Allsorts and Dolly Mixture plant in Blackpool. The sale of Monkhill will complete Cadbury's disposal of non-core brands and businesses, which began in October 2005.
The programme, through which Cadbury has also sold its Australian jam business and Cadbury Italia, will have raised more than £270m.