Farley's & Sathers to acquire Brach's Candy
September 17, 2007
by Keith Nunes
ROUND LAKE, MINN. — Farley’s & Sathers Candy Company Inc. will acquire Brach’s Candy from Barry Callebaut AG, Zurich, Switzerland. Terms of the agreement, which is scheduled to close in November, were not released.
The sale will include all of the business and assets of Brach’s Candy, including three production facilities in Chattanooga, Tenn.; Winona, Minn.; and Vernell, Mexico. The company is headquartered in Dallas and has annual sales of approximately $270 million.
"We are very pleased to be adding Brach’s to Farley’s & Sathers Candy Co.," said Dennis Nemeth, president. "Brach’s is a well-established brand and its products are highly regarded. This addition clearly marks our continued commitment to the candy business, and gives us additional brands with long traditions of quality that perfectly fit our long-term strategy."
It is not the first candy-related acquisition by Farley’s & Sathers. In 2002, the company acquired the Heide brand and related business assets from The Hershey Co, Hershey, Pa., and in 2005 it acquired Trolli from The Wm. Wrigley Jr. Co., Chicago.
"We acquired Brach’s because we wanted to get access to the large U.S. retailers and manufacture private label chocolate for the U.S. market," said Patrick De Maeseneire, chief executive officer of Barry Callebaut. "However, the market for private label products in the U.S. has not developed in the same way as in Europe. Therefore, we decided we should concentrate on other priorities like outsourcing and geographical expansion."