Mars’ $662 million acquisition bid sends shares of Britain’s Hotel Chocolat soaring 160%

LONDON — U.S. food stuff giant Mars mentioned Thursday that it will buy British chocolatier Lodge Chocolat for £534 million ($662 million), as the manufacturer seeks to strengthen its worldwide existence.

Hotel Chocolat, which was established 30 many years in the past to carry moral, very affordable luxury chocolate to the substantial road, mentioned that the offer would allow for the brand to extend “even further and more rapidly.”

“We know our model resonates with consumers overseas, but operational provide chain problems have held us again. By partnering with Mars, we can increase our global existence substantially extra promptly,” joint founder and main govt, Angus Thirlwell, mentioned in a statement.

The announcement sent shares of London Stock Trade-listed Lodge Chocolat soaring a lot more than 160% in early specials to 366.50 pence by 9:30 a.m. area time Thursday.

Mars’ multimillion-pound bid represents a purchase cost of 375 pence per share.

Hotel Chocolat is primarily U.K.-centered, with 124 retailers domestically and many other individuals abroad.

Its intercontinental enlargement has arrive up in opposition to headwinds. In September 2022, it ceased direct-to-purchaser internet site income in the U.S., months following closing its high avenue stores in the nation. Thirlwell mentioned that “operational source chain problems” had so considerably stymied the brand’s expansion.

The chocolatier also owns an estate in Saint Lucia, which is household to a 140 acre organic cocoa farm and its luxury, eco-resort, Rabot Resort.

“We are assured that Mars will be an excellent extensive-time period residence for Lodge Chocolat, delivering a like-minded, entrepreneurial and objective-led environment in which to optimize the possible of the Hotel Chocolat manufacturer which is previously so beloved by individuals,” Andrew Clarke, world wide president of Mars Snacking, reported in a assertion.