Mars is buying Britain’s Hotel Chocolat in a deal that values the specialist chocolate maker at £534 million ($661 million) and will bolster the US confectionery giant’s presence in the United Kingdom.
News of the deal sent Hotel Chocolat’s shares up 164% Thursday to within striking distance of the offer price of 375 pence ($4.65) per share. The cash offer represents a 170% premium to the brand’s closing share price on Wednesday.
Hotel Chocolat was founded in 1993 by entrepreneurs Angus Thirlwell and Peter Harris who “were on a mission to make chocolate exciting again,” according to its website.
The brand opened its first store nearly 20 years ago in north London and has since grown to 131 UK stores, in addition to cafés and restaurants. It also has stores in Japan and a working cocoa farm in the Caribbean, which houses a luxury eco-hotel.
“Mars considers that the acquisition would further strengthen its commitment to the UK market, bringing a much-loved brand into its portfolio and deepening its relationships with consumers,” Hotel Chocolat said in a statement. “The UK has been an important market for Mars.”
The US company has operated in the United Kingdom since 1932 and employs around 10,000 people in the country.
In the most recent financial year, Hotel Chocolat posted what it described as “disappointing” financial results. Co-founder and CEO Thirlwell, who will stay on under Mars, said the takeover would boost the brand’s growth prospects.
“We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back,” he said in the statement. “By partnering with Mars, we can grow our international presence much more quickly,” he added, describing Mars as an “excellent long-term steward of the Hotel Chocolat brand.”
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