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Fazer Confectionery, the wholly owned business of Oy Karl Fazer AB, and Cloetta AB will merge to create the Nordic countries' largest chocolate and confectionery company with a market share of over 25 percent. The merged company, Cloetta Fazer AB, will employ 3,000 people, and is expected to garner net sales of SEK 5,100 million and an operating profit of SEK 280 million. "We are highly impressed by Cloetta's development and the company's success with the Candelia acquisition. We therefore look forward to taking part in the ongoing restructuring of the Nordic confectionery market together with Cloetta's shareholders," says Mats Jansson, managing director of Fazer.The merger will create substantial cost synergies in production, sales, marketing, purchasing and administration that are expected to arise within a three-year period, and reach a full impact of SEK 75 yearly. "In order to safeguard our long-term competitiveness and create strong Nordic brands, both Fazer Confectionery and Cloetta must grow larger," says Lennart Bohlin, managing director of Cloetta. Fazer leads the market in Finland with a 30 percent share; and Cloetta is Sweden's largest chocolate and confectionery company. The new company is to be based in Stockholm, Sweden and will be built over a twoyear period. The group will operate seven production facilities for chocolate and sugar confectionery (three in Sweden, two in Finland, and two in Poland). The product ranges and brand portfolios of both companies are complimentary. Cloetta's best known brands include Kexchoklad, Polly, Bridgeblanding, Center, Plopp, Tarragona, and Sportlunch; Fazer's top brands include Fazermint, Geisha, Marianne, Tyrkisk Peber and Kina. Cloetta's principal owner, AB Malfors Promotor, and Oy Karl Fazer AB, will together be principal owners of the new company. The company's managing director will be Lennart Bohlin, present managing director & CEO of Cloetta; and Oy Karl Fazer AB's Managing Director Mats Jansson will serve as chairman of the board.