Cloetta divests its distribution business in Belgium
Cloetta has today divested its Belgian operation to Katjes International GmbH & Co. KG, Germany.
Following the merger with LEAF, Cloetta operates in Belgium through a Belgian distribution company, which primarily distributes brands that are not owned by Cloetta.
The divestment of the distribution company is part of Cloetta's strategy to focus on its core brands. Katjes will continue to sell and distribute the leading chewing gum brand Sportlife and other Cloetta owned brands in Belgium.
In 2011, Cloetta's distribution organization in Belgium had approximately 50 employees, and sales of approximately SEK 200m, whereof approximately SEK 40m are Cloetta owned brands. The divestment of the distribution company will have a limited effect on Cloetta's future operating profit, and the purchase price is insignificant compared to the market value of Cloetta. The divestment will incur a non-cash cost of approximately SEK 30m during the first quarter of 2012. However, the transaction will initially be cash flow positive.
Please refer inquiries to:
Jacob Broberg, Senior Vice President Corporate Communications and Investor Relations, +46 70 190 00 33
The information contained in this press release is such that Cloetta is required to disclose pursuant to the Swedish Financial Instruments Trading Act and/or the Swedish Securities Markets Act. The information was submitted for publication on February 22, 2012 at 13.00 p.m. CET.
Cloetta, founded in 1862, is a leading confectionary company in the Nordic region, the Netherlands, and Italy. In total, Cloetta products are sold in more than 50 countries worldwide. Cloetta owns some of the strongest brands on the market, e.g. Läkerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. Cloetta has 12 production units in six countries. Cloetta’s B-shares are traded on NASDAQ OMX Stockholm.
More information about Cloetta is available on www.cloetta.com