Global confectionary and pet food manufacturer Mars is poised to acquire UK chocolate manufacturer and cocoa grower Hotel Chocolat for the sum of £534 million. The agreed cash offer represents a premium of approximately 169.8% to Hotel Chocolat’s share price of 139p on 15th November. This deal is a significant move for both companies, as it will provide Hotel Chocolat with access to Mars’ international footprint, global supply chain, and extensive commercial relationships, ultimately enhancing its platform for growth.
According to Hotel Chocolat’s co-founder and CEO Angus Thirwell, the business has faced “supply chain challenges” that have hindered its growth. However, Mars believes that it is “well-positioned” to support Hotel Chocolat’s next growth phase, offering shareholders 375p per share in the acquisition.
In response to the announcement, Thirlwell expressed enthusiasm about the partnership with Mars, stating that it aligns with Hotel Chocolat’s mission to reinvent chocolate for people and nature, and to make an increased positive impact with the help of Mars’ capabilities. This sentiment was echoed by Andrew Clarke, global president of Mars Snacking, who emphasized the strong cultural fit and shared commitment to purpose, quality, and sustainability between the two companies.
The acquisition is seen as a strategic move to further strengthen Mars’ commitment to the UK market, bringing an exciting brand into its portfolio and deepening its relationship with consumers. Both companies see this partnership as an opportunity for growth and look forward to supporting Hotel Chocolat’s next phase of development.