M&A

BBX Capital acquires specialty candy retailer It’s Sugar for $57m

By Douglas Yu contact

- Last updated on GMT

It's Sugar reported net revenues of $78.4m for the past 12 months ending April 30, 2017.  Photo: It's Sugar
It's Sugar reported net revenues of $78.4m for the past 12 months ending April 30, 2017. Photo: It's Sugar
Private equity firm BBX Capital has acquired It’s Sugar for approximately $57m to further expand its footprint in the wholesale confectionery market.

It’s Sugar, based in Florida, is the largest specialty candy retailer in the US with 95 locations across the country, according to a release. The company generated net revenues of $78.4m for the past 12 months ending April 30, 2017.

BBX Capital’s investment in It’s Sugar represents 93% of the candy retailer’s membership interest. It’s Sugar’s founder and CEO, Jeff Rubin, will remain in his current position and continue to hold a “meaningful”​ membership interest, the release said.

Rubin was unavailable to comment on the deal.

The president of BBX Capital, Jarett Levan, said the company is always looking to acquire companies with good management.

Jarett Levan 1
Jarett Levan

Upon the acquisition, It’s Sugar will operate within BBX Capital’s confectionery division, BBX Sweet Holdings​. The investment firm has made multiple acquisitions in 2014 and 2015 to grow its premium confectionery portfolio, including Anastasia Confections​, Kencraft Candy​, The Toffee Box​ and Helen Grace​.

Anticipating $110m revenues

“While the acquisition is not expected to generate net income in the short term, the company’s acquisition is expected to be immediately cash flow accretive to BBX Capital and will expand the company’s retail confectionery footprint, which includes Hoffman’s Chocolates, to more than 100 locations,”​ BBX Capital said.

“BBX Sweet Holdings’ wholesale and retail annual total revenues for 2017 are anticipated to be between approximately $110m and $115m,”​ the company added. “BBX currently plans to further expand It’s Sugar by opening new retail locations in high traffic leisure locations.”

New Acquisitions

The president of BBX Capital, Jarett Levan, said, “BBX Sweet Holdings will continue to expand its footprint through multiple channels, and through wholesale doors in food, drug, mass and club.”

“We always look for good financial performance, great brands, and attractive product mix,”​ he said. “However, most importantly is acquiring companies with good management.”

“We would expect to continue to grow the business organically through additional acquisitions opportunities,”​ Levan said. 

Related topics: Manufacturers, Chocolate, Candy, Premium

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