The Sydney-based investor plans to bring the chocolate and liquorice maker to the market in the second half of this year, as per sources cited by the Australian Financial Review (AFR).
Reports suggest the company could be valued at up to A$1bn ($669m), based on a $70m earnings sum.
Quadrant has been asked to provide further details regarding the rationale behind the planned sale.
Headquartered in the Sydney suburb of Ingleburn, Darrell Lea manufactures a variety of liquorice, chocolate bars, and chocolate-covered confectionery products, including the Rocklea Road, Bullets, and BB’s chocolate balls lines.
The company’s products are sold to retailers in Australia, such as Coles and Woolworths. Additionally, Darrell Lea exports to retailers in the UK, US, and Canada.
Quadrant acquired a majority stake in the group in 2018 for around A$200m ($133.87m).
According to local reports from ABC News, the company’s owner, Tony Quinn, sold 80-90% of the business, retaining a minority “low-double digit” stake as a silent investor.
In the same year, Darrell Lea completed the acquisition of local competitor Heritage Fine Chocolates.
Darrell Lea is part of Quadrant’s No.6 investment fund, valued at A$1150m, alongside other businesses such as My Muscle Chef and Partnered Health.
Quadrant’s decision to potentially sell the confectionery group coincides with a decrease in cocoa prices. While prices dropped to $8,000 a tonne from a record high of $12,261 in April, companies remain cautious about disclosing pricing strategies for 2025.
Hershey’s CEO Michele Buck anticipates that cocoa prices will remain inflationary into 2025. She stated that it is too early to discuss financial scenarios for 2025 due to competitive reasons.
In contrast, Mondelez International acknowledged the challenging and dynamic operating environment in the chocolate sector, expressing confidence in the business’s growth prospects for the year.
