sold for $63 million
Nahr Ibrahim facility to supply international markets
Cloetta, a Swedish confectionery company, has signed an agreement to acquire Alrifai Nutisal, a Swedish subsidiary manufacturing dry roasted nuts.
Moussa Al Rifai, Group General Manager, said: “It was a great opportunity for us to sell the Swedish facility, because the return on investment was very high.” The value of the deal is worth $63 million. About $16 million will be paid upfront within two months and the rest after three years.
During the upcoming three years Al Rifai will supply Cloetta with the raw material and knowhow to produce its range of nut products.
“Selling Alrifai Nutisal to Cloetta will ensure the sustainability and growth of the brand in Sweden and beyond. We are sure that the Cloetta will be able to achieve in two years all the success we achieved in six years,” Al Rifai said.
The acquisition will require a restructuring cost of approximately $1.5 million, in 2014.
Al Rifai sold the facility in Sweden to focus on other international markets. The new facility in Nahr Ibrahim that will start operating soon will supply all regional and international markets. The local factory will be equipped with high-tech machines and equipment to produce nuts with longer expiry dates. Al Rifai will also open new outlets in Canada soon. Nuts for the outlet in Canada will be exported semi roasted.
Alrifai Nutisal AB (Sweden) produces dry roasted nuts under the brand Nutisal. It was established in 2007 and has yearly sales of about $30 million. Nutisal is sold in Denmark, Norway, Germany, UK and the Benelux countries. Qatar First Bank owns 35% of Al Rifai Group.
Date Posted: Dec 12, 2013