Accent Equity acquires Candyking
21 Dec, 2007 08:00 CET
– market leader in pick & mix candy in the Nordic countries and the UK
The Accent Equity 2008 investment fund is acquiring all the shares in Candyking International and its subsidiaries from the Fazer Group. The acquisition is made in partnership with company management. Candyking (which goes under the name Karamellkungen in Sweden) is the leading distributor of pick & mix candy (bulk candy) on the Nordic market and also has a strong position on the British market under the Candyking brand. The company is currently represented in more than 7,000 cinemas and shops. Candyking currently has sales of about EUR 150 million and 800 employees. EQT Expansion Capital I supported Accent in the acquisition with a minority equity investment and a mezzanine loan.
The acquisition of Candyking is the second investment made by the Accent Equity 2008 investment fund, with a total of about SEK 3.6 billion available for investments in large and medium-sized companies in the Nordic region. Just a couple of days ago, Accent Equity 2008 announced an investment in the load carrier manufacturer Mont Blanc. Since the start in the mid-1990s, Accent’s five funds have invested in some 50-odd companies and divested about 40 of them with good results for the funds’ investors.
The basic idea of Candyking is that the consumer puts together his own candy bag according to need, taste and occasion. The assortment is of the highest quality and contains select favourites from the best suppliers.
Candyking is the international name of the company, which goes under the brand name Karamellkungen in Sweden. Candyking and Karamellkungen are strong brands with an attractive assortment and an effec-tive presentation. They can therefore offer grocery retailers, cinemas, amusement parks and service sta-tions a package solution with marketing activities, displays, service and sales support.
“Candyking has a track record as an innovative market leader in pick & mix candy,” says Jan Ohlsson, CEO at Accent Equity Partners, who act as advisors to Accent Equity 2008. “For more than 20 years, the company has refined the basic idea where the customer picks the contents of his or her own candy bag. Together with the company’s experienced management, we will now further develop this concept and take it into new markets. In my judgement, there is great potential to grow both organically and via acquisi-tions.”
Candy has been sold in bulk in one form or another for many years – in candy stores and kiosks. It was not until the mid-1980s that Candyking/Karamellkungen established a concept for pick & mix candy starting in grocery stores. Over the 20 years Candyking/Karamellkungen has existed, pick & mix candy sales as a percentage of total confectionery sales has gone from a few percent to over 30% in some mar-kets.
“We are anxious to launch our business plan together with Accent,” says Mika Olenius, Managing Direc-tor of Candyking. “There is a lot to do when it comes to developing both the assortment and the concept and spreading our basic idea to new markets. Increased volumes will also enable us to further improve our internal efficiency and offer our customers an even more competitive concept with top-quality candy for the consumers.”
For further information, please contact:
Jan Ohlsson or Niklas Sloutski, Accent Equity Partners, telephone +46 8 545 073 00 or
Mika Olenius, Candyking International, telephone +46 70 879 70 22