Cadbury buys Turkish gum maker for 333m
maker, from the Amram family in a deal worth $450m (€333m) in cash
and assumed debt.
The move is part of an ongoing reshuffle as the company tries to improve profit margins in its confectionery divisions. "The purchase of Intergum is aligned with our strategy of pursuing bolt-on acquisitions to further strengthen our confectionery platform," said Todd Stitzer, Cadbury's chief executive officer. In 2006 the Turkish gum market alone had a value at retail of US $232m (€172m), and grew by 17 per cent, according to Cadbury. In the same year Intergum, which produces chewing gum brands such as 'First' and 'Falim', had a 46 per cent share of the Turkish gum market. It had revenue of US $109m (€81m), of which approximately 25 per cent was from exports. "Intergum is highly complementary to our current operations in Turkey, where we have a leading position in the candy market," Stitzer added. In 2005 Intergum was one of the top five chewing gum manufacturers of the world, and has developed a the private label gum business over the last three years, according to the company's web site. It currently supplies several major international supermarket chains within the EU and the US, and has adapted its products to have a presence in more than 50 countries, Intergum said. The acquisition, which is subject to regulatory approval by the Turkish Competition Board, is expected to complete in the third quarter of 2007. Several other restructuring plans were disclosed this year as Cadbury aims to cut its cost base. The first major reshuffle was the separation of Cadbury' confectionery and Americas beverages businesses, announced in March. This week, the firm stated they were selling businesses in Australia, Italy and Canada to raise over £45m (€66.4m) towards its 2007 disposal target. Yesterday Cadbury announced that it will restructure its activities in Britain and Ireland, resulting in the dismissal of several senior executives. It will split current responsibility for operations in Europe, Middle East and Africa in two.