Eurazeo acquires Mondelez confectionery firm for €157m

Alice Tchernookova
04 May 2017

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Listed investment firm Eurazeo has completed the acquisition of the confectionery arm of US-based group Mondelez International.

The brands will be regrouped under new holding CPK. Eurazeo will hold 68% of CPK's capital after syndication to Eurazeo Capital II, representing a total investment of €164m covering Mondelez's assets, transactional costs and operational costs dedicated to CPK over the last year, according to the GP.

A group of co-investors, including Cerea Capital and members of the management team, will hold the remaining 32% stake. Cerea will notably provide the new company with access to its French agriculture network, the investor said in a statement.

Eurazeo's acquisition comes after more than a year of preparation led by company head Jean-Marc Saubade and his team – Eurazeo had entered exclusive talks for the assets in April 2016. It includes the takeover of a portfolio of European confectionery brands, including Carambar, Poulain, Krema, La Pie Qui Chante, Terry's, Pastilles Vichy, Rochers Suchard and Malabar. The deal includes five production sites in France (Blois, Marcq-en-Baroeul, Saint-Genest, Strasbourg and Vichy) employing a total 750 people, and also includes a co-manufacturing agreement with Mondelez.

As part of the creation of CPK, a central team of more than 160 employees was set up, recruited from Mondelez volunteers and external applications. CPK will therefore employ 910 people in total.

Valued at €157m in this transaction, CPK has revenues of around €250m, and is debt free with €63m in net cash, according to Eurazeo. The group is targeting organic growth of 20% and an EBITDA margin of 15% within the next five years.

A budget of around €35m will be allocated to a CPK industrial investment programme, with the objective of having 100% of products made in France by 2020. A plan transferring certain Mondelez production lines has also been drawn up to ensure CPK's independence within two years.

Finally, investments in marketing and advertising campaigns will be tripled in order to reinforce the group's new identity, Eurazeo said in a statement.

Company
Founded in 2017 following Eurazeo's takeover of Mondelez, CPK includes a range of French confectionery and sweets brands. The company is the holding group of Carambar & Co, and is based in Clamart.

The group employs a total of 910 people and has revenues of €250m.

People
Eurazeo – Virginie Morgon (deputy CEO).