Finnish food group Raisio has announced that it is selling its confectionery operations in the UK and the Czech Republic to Valeo Foods Group.
The €100 million deal is set to be finalised by the end of this month.
Raisio says that it divesting the business, which includes brands such as Poppets, Fox’s, Just and Pedro, in a bid to focus on its portfolio of healthy food products.
“The divestment of the confectionery business is an important strategic step for Raisio towards a responsible forerunner focusing on healthy foods,” said Raisio president and CEO Pekka Kuusniemi.
“Together with our already strong balance sheet, the proceeds from the deal enable extensive acquisitions that strategically fit our core business.”
The company, which produces the Benecol range of products, reported a 6% sales increase in the third quarter of the year, and announced plans to grow its business through new acquisitions in the future.
Raisio’s confectionery operations have around 1,000 employees, who will now be transferred to Valeo Foods.
Valeo is a fast-growing food group with operations in Ireland, the UK and continental Europe, and annual sales of around €700 million.
The group was established in 2010, and now comprises of brands including Jacob’s, Fruitfield, Roma, Batchelor’s, Chef and Odlums.
“We are very excited about the opportunities to expand and grow the acquired businesses through a combination of significant new capital and brand investment,” said Seamus Kearney, CEO of Valeo Foods.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.