The Strategist

Mars buys premium chocolate maker Hotel Chocolat for $662M

11/17/2023 - 07:05

US-based Mars Inc. will purchase British luxury chocolate manufacturer Hotel Chocolat Group Plc for £534 million ($662 million).

J. Stephen Conn
J. Stephen Conn
Mars will pay 375 pence, or 2.7 times the closing price of the securities on Wednesday (139 pence), for each Hotel Chocolat’s share as per the terms of the agreement.

In Thursday's trading, the price of a share of Hotel Chocolat increased by 2.6 times.

"Mars has long admired Hotel Chocolat as a modern premium brand with diverse product lines, world-class product quality and good opportunities to engage directly with consumers through its network of physical shops and online platform," the two businesses stated in a joint press release.

Mars wants to support Hotel Chocolat in expanding its global operations.

The board of the UK-based company has advised shareholders to accept Mars' offer, deeming it to be "fair and reasonable".

Founded in 1987, Hotel Chocolat is a network of chocolate shop-cafés and a producer of fine chocolate. It also has a plantation of cocoa trees in St. Lucia.