Whole Earth Brands has agreed to a takeover by its largest investor Sir Martin Franklin, through an affiliate of his holding company Sababa Holdings, in an all-cash transaction for $4.875 per share. The deal, expected to close in the second quarter of this year, represents a 56% premium to Whole Earth’s closing price of $3.12 on 23 June 2023.
According to the company, the special committee’s top priority has been to deliver an optimal outcome for all its shareholders, customers, and employees. “A “special committee” of the board of directors, which consisted solely of “disinterested members”, unanimously recommended the deal to acquire the US food and beverage group.” Irwin Simon, executive chairman, said that the transaction is in the best interest of all shareholders and provides immediate liquidity at a significant premium.
The news comes after Franklin announced his proposal to take full control of the business in a Securities and Exchange Commission (SEC) filing last June. “His son, Michael, was removed as interim CEO in July to avoid a conflict of interest.”
The deal is being seen as beneficial for the company’s shareholders and the company is optimistic that the acquisition will ensure its smooth functioning in the near future. The company is looking forward to working with the Sweet Oak team to ensure a smooth and timely closing.
Following the takeover agreement, the company is set to release its financial results for the fourth quarter and full year in March. Last April, the company reaffirmed its outlook for full-year 2023 predicting revenues of $550m to $565m and adjusted EBITDA of $76m to $78m.
