Tangerine, the Blackpool-based confectionery firm, has agreed to acquire Monkhill Confectionery from Cadbury Schweppes for £58 million in cash. The deal is subject to completion in February.
Monkhill manufactures and sells the popular Butterkist popcorn brand, the iconic Barratt Sherbet Fountains and Jameson’s chocolate confectionery. The company also produces an extensive range of branded boiled sweets, gums and jellies.
Monkhill has three factories in Yorkshire at York, Cleckheaton and Pontefract and operates its own distribution centre in Derbyshire at Holmewood, near Chesterfield.
Tangerine makes well-known brands including favourites such as Princess Marshmallows, Taveners and MOJO. It employs over 600 people at sites in Poole, Liverpool and two sites in Blackpool.
Commenting on the deal Tangerine chairman Steven Joseph said: “To acquire brands and products of such heritage is a mouth-watering prospect.
“There is no doubt that this major acquisition will significantly enhance Tangerine, creating a business with a turnover of £150 million and 1,500 employees. The combined entity will have an increased selling capability and a much wider product offering. Tangerine will be able to provide the trade and consumers with the most comprehensive sugar confectionery range available.”
He added: “We very much welcome the skills, innovation and commitment that the staff and employees of Monkhill will undoubtedly bring to the enlarged company and we look forward to working with everyone connected with the business.”
This will be the second major purchase by Tangerine. In August 2006 it bought the confectionery arm of Burton’s Foods for an undisclosed sum.
Garrett Curran at Close Growth Capital, the hybrid equity and debt finance provider, said: “Since our original investment in Tangerine in January 2006 the business has expanded at an impressive rate, with the acquisition of Burton’s Confectionery in August 2006 and now this latest acquisition of Monkhill. We continue to fully support the business and the management team and look forward to working with them to deliver further growth in the future.”
Tangerine is advised by accountants KPMG, corporate and commercial law firm Dickson Minto and corporate advisors Stamford Partners.