Lindt Buys Russell Stover in Company’s Biggest Purchase
Source: Bloomberg
By Corinne Gretler and Jan Schwalbe Jul 14, 2014 7:40 AM ET
Lindt & Spruengli AG (LISN), the world’s largest producer of premium chocolate, agreed to acquire Russell Stover Candies Inc. to become the third-biggest chocolate producer in North America.
The purchase brings Lindt’s golden foil-wrapped Easter bunnies together with a brand whose standing in the U.S. candy market was elevated by its appearance in the 1994 movie Forrest Gump. The price wasn’t disclosed though Kilchberg, Switzerland-based Lindt said the acquisition is the biggest in its history.
Russell Stover, the largest U.S. maker of boxed chocolate, has annual sales of about $500 million and will boost revenue in North America beyond $1.5 billion in 2015, Lindt said. The acquisition of the closely held company will give Lindt 7.9 percent of the North American chocolate market, according to Bloomberg Industries data, propelling it past Nestle SA. (NESN) The company will be a distant third behind Hershey Co. and Mars Inc., which together control more than half of the market.
“The takeover certainly makes sense for Lindt, as it really strengthens their position in the U.S.,” Jean-Philippe Bertschy, an analyst at Bank Vontobel AG, said by phone. Russell Stover’s presence in the central U.S. will complement Lindt’s strength on the East and West Coasts, he said.
Read more: http://www.bloomberg.com/news/2014-07-14/lindt-agrees-to-buy-russell-stover-in-company-s-biggest-purchase.html
Ordinarily, I put business transactions in the Economy Forum, but everyone in America has had Russell Stover or Whitman candy at some time in his life. I mainline Russell Stover candy over the holidays. It wouldn't be the War on Christmas without it.
And now for the evil part: does this have anything to do with inversion? A Swiss company takes over an American company, so that it can dodge U.S. taxes? Hmmmmmm.
Hat tip, WAMU.
Sweet Deal? Chocolatier Lindt Buys Russell Stover
By: Bill Chappell
July 14, 2014
In a push for greater prominence in the American market, Swiss chocolate company Lindt & Sprungli has reached a deal to acquire Russell Stover, the company whose products include the time-tested Whitman Sampler box of chocolates, a product featured in the 1994 film Forrest Gump.
The deal would make the combined company the No. 3 chocolate maker in North America, Lindt says in a news release announcing the deal. The company says the acquisition is the "biggest and most important strategic acquisition" in its history.
The price of the sale wasn't disclosed, but estimates in the Financial Times and The Wall Street Journal have put the figure at $1.4 billion and $1.5 billion, respectively.
"With some 2,700 employees, the Russell Stover Group reports annual sales of around $500 million," Lindt says. The company says Russell Stover's headquarters will remain in Kansas City.
= new reply since forum marked as read
I recommend this site for your theobromine perusals 
Chocosphere
Two companies for whom "chocolate" is defined more like HFCS, cocoa butter, and chocolate flavoring. Lindt may be a distant third, but for those that value the quality of their chocolate over the quantity of it, this is wonderful news. I heartily welcome Lindt's buyout of RS and greater market share 
