Sweet Deal As Tangerine Buys Monkhill From Cadbury

Tangerine, the Blackpool-based confectionery firm, has agreed to buy Monkhill Confectionery from Cadbury Schweppes for Pounds 58 million in cash. The deal is subject to completion in February.

Monkhill makes and sells the Butterkist popcorn brand, Barratt Sherbet Fountains and Jameson’s chocolate confectionery. The company also produces a range of branded boiled sweets, gums and jellies.

Monkhill has three factories in Yorkshire at York, Cleckheaton and Pontefract and operates its own distribution centre in Derbyshire at Holmewood, near Chesterfield. It employs 760 people in Yorkshire and 90 in Derbyshire.

Tangerine’s brands include Princess Marshmallows, Taveners and MOJO. It employs over 600 people at sites in Poole, Liverpool and two sites in Blackpool.

Tangerine chairman Steven Joseph said: “To acquire brands and products of such heritage is a mouth-watering prospect.

“There is no doubt that this major acquisition will significantly enhance Tangerine, creating a business with a turnover of Pounds 150 million and 1,500 employees. The combined entity will have an increased selling capability and a much wider product offering. Tangerine will be able to provide the trade and consumers with the most comprehensive sugar confectionery range available.”

He added: “We very much welcome the skills, innovation and commitment that the staff and employees of Monkhill will undoubtedly bring to the enlarged company and we look forward to working with everyone connected with the business.”

This is the second major purchase by Tangerine. In August 2006 it bought the confectionery arm of Burton’s Foods for an undisclosed sum.

Garrett Curran at Close Growth Capital, the hybrid equity and debt finance provider, said: “Since our original investment in Tangerine in January 2006 the business has expanded at an impressive rate, with the acquisition of Burton’s Confectionery in August 2006 and now this latest acquisition of Monkhill. We continue to fully support the business and the management team and look forward to working with them to deliver further growth in the future.”

(c) 2008 Yorkshire Post. Provided by ProQuest Information and Learning. All rights Reserved.