Mars Acquires British Chocolate Specialist in UK Expansion
Mars strengthens UK foothold with £534m acquisition of specialist chocolate maker, Hotel Chocolat, expanding its presence in Britain's confectionery market
Mars is set to acquire Hotel Chocolat in a deal worth £534 million ($661 million), enhancing the US confectionery company's market position in the United Kingdom. The news resulted in a surge of 164% in Hotel Chocolat's shares on Thursday, bringing them close to the offer price of 375 pence ($4.65) per share. The cash offer presents a substantial 170% premium compared to the brand's closing share price on Wednesday.
Founded in 1993 by Angus Thirlwell and Peter Harris, Hotel Chocolat aimed to reinvigorate the world of chocolate, as stated on its official website. The brand's inaugural store was established almost two decades ago in north London and has since expanded to encompass 131 stores across the United Kingdom, alongside cafés and restaurants. Additionally, Hotel Chocolat has made its presence known in Japan and boasts a functioning cocoa farm in the Caribbean that features a lavish eco-hotel.
Hotel Chocolat stated that the acquisition would enhance Mars' dedication to the UK market, adding a beloved brand to its portfolio and strengthening its bonds with consumers. Mars has been present in the UK since 1932 and currently employs approximately 10,000 individuals in the country.
Hotel Chocolat recently reported underwhelming financial results for the latest fiscal year. Thirlwell, the CEO and co-founder who will remain with the company after the takeover by Mars, expressed that this acquisition would enhance the brand's potential for growth.
"Our brand has a strong connection with consumers abroad, but we have faced setbacks in our operational supply chain," stated Thirlwell. "Teaming up with Mars will allow us to expand our global presence at a faster pace," he further commented, attributing Mars as an exceptional caretaker for the Hotel Chocolat brand in the long run.
