Cadbury sells non-core businesses
June 05, 2007
by FoodBusinessNews.net Staff
LONDON — Cadbury Schweppes P.L.C. announced the sale of some of its non-core businesses, including its American jams, toppings and jellies business to the H.J. Heinz Co. Australia Ltd.
This sale includes the grant of a license to use the Cottee’s and Rose’s brands in certain categories in Australia and New Zealand. The total sale price is about £29 million ($57.8 million). The sale is expected to be completed in the early third quarter.
In addition, Cadbury already has sold Allen Candy — a Canadian bulk and seasonal candy business — to The Allan Candy Company Ltd., for up to £10 million ($19.9 million). The Allan Candy Co. is newly incorporated for the purpose of the sale. Cadbury Italia, an Italian confectionery business, has been sold to Leaf Italia SRL for £6 million.
"Once all these transactions are completed, we will have raised over £200 million from our program of non-core disposals," said Ken Hanna, chief financial officer. "We remain on track to deliver our target of around £250 million from this initiative by the end of this year."