Bayn Europe acquires Koppers Candy Sweden AB and strengthens the Group's margins
Bayn Europe AB ("Bayn") has entered into a binding agreement to acquire 100% of the shares in Koppers Candy Sweden AB ("Koppers" or "the Company") for a cash purchase price (the "Purchase Price") of USD 847,000 (the "Transaction"). Koppers is a Swedish foodtech company that manufactures functional and sugar-reduced sweets for, among others, Bayn's brand Tweek. The transaction means that the Bayn Group significantly streamlines the R&D process and ensures control and access to the entire value chain. The acquisition strengthens the Group's margins through significant cost savings for the purchase and manufacture of its candy products.
TRANSACTION IN BRIEF
· Bayn acquires 100% of the shares in Koppers Candy Sweden AB (the "Shares")
· The purchase price amounts to USD 847,000, of which USD 367,000 will be paid in cash upon closing on 1 October 2020 and the remaining USD 480,000 will be paid in two tranches over the next 10 months.
· The transaction is financed with the Group's existing cash
· Koppers has forecasted net income and EBITDA for the next 12 months of SEK 23 million and SEK 1.2 million, respectively.
· The company provides the Bayn Group with sales growth and greatly improved margins through significant cost savings for the purchase and manufacture of its candy products
· Through the acquisition, Bayn also ensures full control over the entire value chain and gains access to a well-established manufacturing facility with the opportunity for further investments in R&D and product development.
· From the completion of the acquisition, the timeframe of the Group's technology development projects is significantly streamlined and reduced
· The transaction is in line with Bayn's communicated strategy to actively identify, evaluate and acquire technology-enhancing foodtech companies in sugar and calorie-reduced foods.
· The CEO and the team in the factory will continue to be active in the Company and drive and develop the business forward
· The acquisition also entails several systemic synergy effects and a strengthened market position to produce functional sweets
"The acquisition of Koppers is a natural step for us in the process of gaining control over the entire value chain and ensuring that we are at the forefront of our product development. Now we also have the opportunity to invest in a production facility close to production for EUREBA and where we can effectively test new solutions. The acquisition is the first production facility that we acquire and is very important in a strategic aspect as we are now able to deliver and produce the companies that contact us and want to buy finished products. We also see many clear synergy effects, e.g., significantly lower prices to produce the Tweek candy that is already produced there. It will be a welcome margin booster which means that we can invest even more in growth and fits perfectly into the acquisition agenda that we have for the Group going forward," says Simon Petrén, Vice President Bayn Europe AB.
BACKGROUND AND MOTIVES
Bayn, a foodtech group in sugar-reduced foods, has entered into a binding agreement to acquire 100% of the shares in Koppers Candy Sweden AB for a purchase price of USD 847,000, of which USD 367,000 must be paid in cash no later than October 1, 2020 and the remaining USD 480,000 is paid out in two tranches; on 31 December 2020 and 30 June 2021 respectively.
Koppers is a leading manufacturer of fibre-based and sugar-reduced candy products in Sweden. The company has a solid history of candy production and a well-diversified machine park, which is required to be able to offer a wide and attractive product range.
The seller, Kopper’s Candy LLC, is run by a prominent entrepreneurial family from the USA, which owns, among other things, the hundreds million USD e-commerce store www.nuts.com and chocolate manufacturing facilities. In connection with the completion of the Transaction, an agreement with contract manufacturing for Kopper’s Candy LLC and possible distribution of the Group's brands in the USA will be concluded.
Tweek is today one of the largest and most important customers for Koppers factory. Through the acquisition of Koppers, the Bayn Group ensures the continued production of its products and obtains synergy effects that entail significant cost savings for the purchase of its candy products. Copper's factory also strengthens Bayn's market position in calorie- and sugar-reduced foods. Both companies operate in a rapidly growing niche where Bayn now has access to its own development and manufacturing facility. The transaction will mean that the production of Bayn's products will be integrated as part of the Group, which will mean that the lead time on R&D will be significantly shortened and ensure an efficient process for testing new versions of EUREBA in commercial products.
The merged group will continue to optimize and further develop the technological functions in manufacturing to launch additional products to the market. Bayn expects that the acquisition will result in several potential synergies and increased growth opportunities immediately after the Transaction is completed.
For further information, please contact:
Simon Petrén, Vice President and M&A manager at Bayn Europe AB (publ.)
Tel: +46 709 999 455
Email: simon.petren@bayneurope.com
This information is such information that Bayn Europe AB is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication on 25th of August 2020 13.45 CET.
Bayn Europe is a Swedish food-tech group, supplying cutting edge and healthy sugar reduction solutions for the food and beverage industry. Bayn’s ingredient solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar- and calorie reduced products. For more information www.bayneurope.com
Bayn is listed on Nasdaq Stockholm, First North Growth Market, under the ticker BAYN
FNCA Sweden AB is Bayn’s certified adviser. Tel: 08-528 00 399 E-mail: info@fnca.se
Important information
This communication may contain certain forward-looking statements. Such statements are all statements that do not relate to historical facts and include expressions such as "believe", "estimate", "anticipate", "expect", "assume", "predict", "intend", "may", "presuppose", "should" or similar. The forward-looking statements in this release are based on various estimates and assumptions that in several cases are based on additional assumptions. Although Bayn believes these assumptions were reasonable when made, such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that are difficult or impossible to predict and that are beyond Bayn’s control. Such risks, uncertainties and important factors could cause the actual results to differ materially from the results expressly or implicitly indicated in this communication through the forward-looking statements. The information, perceptions and the forward-looking statements in this release apply only as of the date of this release and may change without notice.