Cadbury Schweppes buys Dandy's gum brands

Cadbury Schweppes has confirmed it has bought the branded chewing gum business of Dandy AS from the Bagger-Soerensen family in…

Cadbury Schweppes has confirmed it has bought the branded chewing gum business of Dandy AS from the Bagger-Soerensen family in Denmark for £201 million sterling.

Cadbury said the deal makes it the second largest player in the European chewing gum market.

The group said it is also buying a 25 per cent stake in Dandy's contract manufacturing facilities based in Vejle, Denmark, for £23 million sterling. The transaction also includes a 50 per cent interest in R&D facilities in Vejle.

Mr John Sunderland, chief executive officer of Cadbury, said: "With this acquisition we are broadening our position in the European confectionery market, building on our strong businesses in France, Poland and Russia. Dandy also brings significant R&D expertise in the fast growing 'functional' confectionery market."

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The completion of the acquisition is expected in the autumn this year.

AFP