Chocolates Consumes Lil’ Dutch Maid

Colombian food company Grupo Nacional de Chocolates (GNC) says it has agreed to acquire 100% of US-based peer Fehr Holdings for $84m. GNC will use a combination of cash on hand and bank financing, CEO Carlos Enrique Piedrahita tells LatinFinance. “We are still evaluating offers from several banks and will select the most competitive,” he says. Piedrahita estimates that one third will be paid for with cash on hand and the rest financed. “The banks have offered to finance the total amount, but we will use some cash,” he notes. The deal, which is expected to close in October, could see the price tag cut by $4m if the target does not meet certain operational goals. Fehr, which has operations in Texas and Oklahoma, produces cookies under the brands Lil’ Dutch Maid, Sun Valley and Tru-Blu, which are distributed in the US, Mexico and Panama. “One presumes the company will use the Texas location as a launchpad for their own products,” says Celfin in a research note. “GNC have previously been very successful at buying biscuit companies overseas with Pozuelo in Costa Rica being a complete turnaround story,” it adds, describing the acquisition as a strategically good move. Piedrahita says US boutique Stephens is GNC’s advisor on the deal and that McColl Partners, an independent firm based in North Carolina, is Fehr’s advisor.