Cadbury Schweppes Announces Agreement To Buy South Africa’s Leading Chewing Gum Business, And Intention To Sell Its Bromor Business
08 Feb 06, Cadbury Schweppes announces that it has agreed to buy South Africa’s leading chewing gum business from Dan Products (Botswana) (Pty) Ltd. for £33 million in cash. The business manufactures gum in Botswana principally for sale in the South African market under the STIMOROL and Dirol brands. As a result of the purchase, Cadbury Schweppes will reinforce its strong participation in the fast-growing South African market, and its platform for expansion into other Southern African markets. In 2005, the business’ revenue is forecast to be ZAR93 million (£9m), and earnings before interest and tax (EBIT) ZAR35 million (£3 million). The purchase is subject to clearance by the South African competition authorities, with completion anticipated in the first half of 2006.
Cadbury Schweppes also announces that it intends to sell Bromor Foods (Pty) Ltd., which sells branded concentrate and other soft drinks in South Africa. In 2004, Bromor’s revenue was ZAR767 million (£65 million), and underlying profit from operations was ZAR72 million (£6 million). Cadbury Schweppes expects to agree the sale of Bromor in the first half of 2006. The sale will be subject to clearance by South African competition authorities.
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