On 22 December 2017, Raisio announced to divest its confectionery business to Valeo Foods Ltd. Raisio’s confectionery operations in the UK and Czech Republic were transferred to become part of Valeo Foods Ltd on 29 December 2017.
In Raisio’s 2017 reporting, the confectionery business is treated as a discontinued operation.
The arrangement was carried out as a share transaction and its enterprise value was EUR 100 million. The buyer paid an enterprise value of EUR 76.8 million to Raisio for the confectionery business shares. For the divestment, Raisio recorded divestment loss of EUR 38.4 million.
Raisio’s divested confectionery business included six production plants in the UK and Czech Republic, as well as the brands, of which Poppets, Fox’s, XXX, Just and Pedro are the best-known. The divested business was also a significant confectionery producer for its retail and industrial customers.
As a result of its UK acquisitions completed in 2010 and 2011, Raisio became a confectionery producer, too. In 2012, Raisio acquired the Czech company Candy Plus and all the Group’s confectionery operations were combined into one unit.
Raisio’s President and CEO Pekka Kuusniemi says that the divestment of the confectionery business was an important strategic step for Raisio on its path towards a responsibly operating forerunner focusing on healthy foods.