Quadrant Private Equity will look to divest Darrell Lea for a potential price tag of $1 billion in the second half of this year, the Australian Financial Review has reported.
The firm purchased the company in 2018 for $200 million, but now as record-high cocoa prices start to fade, the AFR reported that the firm could expect to market the business based on a $70 million earnings figure which would place it in a price range close to $1 billion.
At the time Quadrant purchased the Australian confectionery business, Chris Hadley, Executive Chairman of Quadrant, said the intention was to make it one of Australia’s largest confectionery companies in the country.
“It’s been around for a long time; it’s got incredibly good market share.
“The confectionary industry is an attractive market. It’s very resilient, and it’s growing,” said Hadley.
Source: www.c-store.com.au
