Mars to snap up listed Hotel Chocolat in half a billion pound plus deal
Luxury chocolate brand Hotel Chocolat has agreed a £534m deal to be bought out by the US giant Mars, it was announced this morning.
In a statement on the London Stock Exchange, Hotel Chocolat said the bid represented a 169.8 per cent premium on its current 139p share price at market close yesterday.
Shares soared over 160 per cent in early trading.
Mars said it has “long admired” the company’s “impressive credentials.” The US-based firm said it is “well positioned to support Hotel Chocolat’s next growth phase with its international footprint, global supply chian and extensive commercial relationships.”
It marks the latest company to be swiped off the London Stock Exchange by a foreign buyers, which view its London-listed shares as undervalued.
Hotel Chocolat directors were advised by Lazard and Liberum on the financial terms of the cash offer.
Mars, which employs 10,000 people in Britain and has operated in the country since 1932, said the acquisition would “further strengthen its commitment to the UK market.”
“The UK has been an important market for Mars, and it expects this to be complemented by the acquisition of Hotel Chocolat, with its distinctive capabilities in product development, luxury gifting and immersive brand experiences.”
Angus Thirlwell, Chief Executive Officer of Hotel Chocolat said: “We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back. By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.”
Andrew Clarke, Global President of Mars Snacking, said through discussions, it had “become clear that there is a very strong cultural fit – with purpose at the heart of both organisations, and a shared passion for quality and sustainability.”
“We are confident that Mars will be an excellent long-term home for Hotel Chocolat, providing a like-minded, entrepreneurial and purpose-led environment in which to maximise the potential of the Hotel Chocolat brand which is already so beloved by consumers.”