Luxury UK chocolate brand Hotel Chocolat is to go private in a £534m deal with Mars.
The US-based food giant has offered offered 375p for each share in Hotel Chocolat, representing a 170% premium to its London share price of 139p.
Hotel Chocolat believes that the deal will allow its brand to expand internationally, with the potential for “substantial growth outside the UK in the years ahead”. Its board of directors has recommended the offer to shareholders.
Established in 2003, Hotel Chocolat manufactures premium chocolate and cocoa-related products and sells its products online, through a network of stores and through wholesale partners. The company currently has 131 stores in the UK, as well as cafés, restaurants, outlets, factory stores, and an eco-hotel on its working cacao farm in St Lucia. It also has 21 stores in Japan, operated through a brand licensing and supply agreement with a local partner.
“We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back,” said Hotel Chocolat chief executive Angus Thirlwell. “By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.”
Mars said it had “long admired” the business.
“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,” said Andrew Clarke, global president of Mars Snacking.
