Cadbury Schweppes to acquire Turkish gum business
June 07, 2007
by Eric Schroeder
LONDON — Cadbury Schweppes agreed to acquire Intergum, a Turkish gum business, from the Amram family for approximately £225 million ($450 million) in cash and assumed debt. The acquisition, which is subject to regulatory approval by the Turkish Competition Board, is expected to complete in the third quarter of 2007.
According to Cadbury, the acquisition of Intergum will strengthen its participation in the fast-growing Turkish confectionery market, and will enhance the company’s presence in the Turkish gum market, which grew 17% last year. Cadbury said it also expects to benefit from Intergum’s strong capabilities, particularly in the manufacturing of value-added gum products.
In 2006, Intergum had a 46% share of the Turkish gum market, according to ACNielsen, and had revenue of $109 million, of which approximately 25% was from exports. The company has one manufacturing plant in Istanbul, Turkey, and approximately 1,200 employees.
"The purchase of Intergum is aligned with our strategy of pursuing bolt-on acquisitions to further strengthen our confectionery platform," said Todd Stitzer, chief executive officer, Cadbury Schweppes. "We already have the largest emerging markets business of any confectionery company, and acquiring Intergum adds to our presence in these high-growth markets. Intergum is also highly complementary to our current operations in Turkey, where we have a leading position in the candy market."