Scandinavia confectioner Cloetta has acquired Irish firm Aran Candy, owner of the Jelly Bean Factory Brand, for an initial SEK 140m ($21.1m).
Cloetta has paid for 75% of shares in Aran Candy and will purchase the remaining shares in 2016 for a fee based on 2015 result targets.
Bengt Baron, CEO of Cloetta, said: “The Jelly Bean Factory has shown strong growth over the last years and the acquisition will significantly strengthen Cloetta’s position in the UK market. In addition, we intend to roll out the products in our current core markets over time.”
The Jelly Belly Factory posted 2013 sales of SEK 100m ($15m). Its main market is the UK but the US, Canada, Germany, Ireland and the Middle East were also flagged by Cloetta as important markets for the brand.
The Jelly Belly Factory will join Cloetta’s sugar confectionery category, which includes brands such as Chewits and Goody Good Stuff.
Cloetta expects restructuring costs of around SEK 15m for 2014. It said it would finance the deal through existing credit facilities.
The Scandinavian firm said in April that it was eyeing further acquisitions after recently acquiring Swedish dried nuts market leader Nutisal and FTF Sweets UK, owner of the British candy brand Goody Good Stuff.
In 2012 Cloetta merged with Dutch confectioner Leaf in a €753m ($1bn) deal.
Single production facility
Richard Cullen will continue as managing director of the Jelly Bean Factory.
The Irish firm was founded in 1998 by Cullen and his father Peter. It employs around 70 people and products are produced from factory in Dublin, Ireland.