Hotel Chocolat has accepted a £534m acquisition bid from Mars, with the board now recommending the cash offer to its shareholders.
The retailer said the bid represented a 168.8% premium on its current 139p share price at the close of business yesterday and said that Mars is “culturally aligned” with Hotel Chocolat’s “shared values of quality, sustainability and purpose”.
It added “Mars believes it is well-positioned to support Hotel Chocolat’s next growth phase with its international footprint, global supply chain and extensive commercial relationships” which will provide the retailer “with an enhanced platform for growth in the UK and potentially in new geographies.”
Mars also owns KIND, Nature’s Bakery and Tru Fru, and said it would “support” Hotel Chocolat’s founders and current management team in developing the brand.
Hotel Chocolat, advised by Lazard and Liberum, consider the terms of the offer to be “fair and reasonable” and its board intend to “unanimously recommend” the offer to its shareholders.
Hotel Chocolat’s chief executive Angus Thirlwell said: “We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back. By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.”
The bid comes at a time when Hotel Chocolat has been struggling, having swung to a £800,000 loss in the 53 weeks to July 3, 2023, while sales declined to £204.5m.
The retailer’s twin international businesses have also struggled, with Hotel Chocolat making the decision to shut its US arm in 2022.
Related Companies
- Previous
- Next
1 Reader's comment