Confectionery giant Mars has snapped up upmarket chocolate retailer Hotel Chocolat in a £534m deal.
Mars Snacking global president Andrew Clarke said it had “long admired” what he termed a “differentiated and much-loved brand”.
He said the businesses were “highly complementary” and there was a “very strong cultural fit”.
“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,” Clarke added.
The retailer plans to accelerate its international expansion following the acquisition.
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Founder and chief executive Angus Thirlwell 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.”
Hotel Chocolat chair Stephen Alexander added that the deal will allow it to “grow further and faster”.
“Joining forces with Mars will deliver great value through the cash offer for Hotel Chocolat shareholders and the combination will create exciting opportunities for our employees as part of Mars,” he added.
The retailer, which struggled to expand its presence in Japan earlier this year, said the acquisition “could provide the brand with an enhanced platform for growth in the UK and potentially in new geographies”.
Last month, Hotel Chocolat revealed that full-year profits had dipped as sales declined 10% on the back of weak online and international sales.
The £534m cash offer represents a 168.8% premium on Hotel Chocolat’s current 139p share price at the close of business on Wednesday.
