Confectionary giant Mars is set to buy Hotel Chocolat in a deal that values the company at £534m.
The upmarket chain - which was co-founded by South Tyneside-born Angus Thirlwell - has issued a statement saying it has reached agreement on a takeover from Hive Bidco, a wholly-owned subsidiary of Mars Incorporated. The offer of 375p per share is more than double Hotel Chocolat’s current share price.
Hotel Chocolat stresses its ‘authenticity’ and ‘originality’, with a “More Cocoa, Less Sugar” motto that makes a commitment to provide cacao farmers with a fair price for their produce. But it said it could not fulfill its ambitions to grow internationally without the financial support that could be offered by a major global corporation like Mars.
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In a statement to the Stock Exchange, Hotel Chocolat said the bid had received the backing of its founders Angus Thirlwell and Peter Harris, directors and shareholders controlling around two-thirds of the company. As part of the offer, shareholders could either receive cash or some shares in the new owner, it said.
Mr Thirlwell said: “Hotel Chocolat’s brand destiny is to become a leading premium chocolate brand in major markets through reinventing chocolate for people and nature. In Mars we have found a true meeting of minds - in strong cultural values, bold strategy and true long-termism.
“Our Gentle Farming programme has got off to a promising start and we truly believe it can help make cocoa agriculture right for nature and for people. Joining forces with Mars to achieve an increased positive impact, is a huge attraction for us.
“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.
“The pillars on which we have built the Hotel Chocolat brand - originality, authenticity and ethical trading, is precisely what brought Hotel Chocolat and Mars together and our intention is to strengthen and invest behind these. I’m excited about the future of the business and in Mars we have found an excellent long-term steward of the Hotel Chocolat brand and everything we stand for.”
Andrew Clarke, global president of Mars Snacking, said: “We have long admired the fantastic business that Angus, Peter and the Hotel Chocolat team have created. Hotel Chocolat is a differentiated and much-loved brand, with an impressive product offering and a deep commitment to its values of originality, authenticity and ethical trading. The Mars and Hotel Chocolat businesses are highly complementary, and during the course of our discussions with Hotel Chocolat’s leadership it has also 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.
“Mars has a long and proud history in the UK, and today’s announcement further strengthens our commitment to this important market by bringing an exciting brand into our portfolio and deepening our relationship with consumers. Building on the strong foundations that Angus, Peter and their team have established, we are very excited to support Hotel Chocolat’s next phase of growth.
“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.”
