Swiss-based Lindt & Sprungli announced its acquisition of U.S.-based Russell Stover Candies. The purchase price was not officially announced but has been reported to be €1.4 billion (US$1.91 billion). That price point would represent approximately three times Russell Stover’s sales and 23 times earnings before interest, tax, depreciation, and amortization (ebitda). The purchase of the Missouri-based Russell Stover would boost Lindt to be the third biggest in the U.S. chocolate market – the biggest in the world. The deal surprised some that Lindt would make a mature market acquisition and not expand into Asia. But Lindt points out that the deal would strengthen its position in the gift market and with retailers, and points to its double digit growth in sales in the first half of 2014 in the U.S. By 2015, post-acquisition sales for Lindt are expected to reach $1.5 billion.
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