Cadbury to acquire Turkish gum maker for $450 mn

LONDON: Cadbury Schweppes Plc, the world's largest confectioner, agreed to buy Turkey's Intergum for $450 million to gain almost half of the country's gum market.

Intergum, which has a 46 per cent market share in Turkey, will be acquired from the Amram family, the London-based company said today in a statement. Cadbury will pay for the company in cash and assumed debt.

“The purchase of Intergum is aligned with our strategy of pursuing bolt-on acquisitions to further strengthen our confectionery platform,'' Chief Executive Officer Todd Stitzer said in the statement. Buying Intergum helps the company expand in faster-growing emerging markets, he said. Turkey's gum market expanded 17 percent last year, according to Cadbury.

The U.K. company is in the process selling or spinning off its North American soft drinks unit, which makes Dr. Pepper and 7 Up soda, and plans to concentrate on Dairy Milk chocolate, Trident gum and other candy. Cadbury has ``an appetite'' to buy gum, chocolate and confectionery makers worth 250 million pounds ($498 million) to 350 million pounds, Stitzer said in March.

The company this week agreed to sell its Australian jams and jellies division to H.J. Heinz Co., as part of a plan to raise 250 million pounds from disposals of smaller assets.

Cadbury last year introduced Trident and Dentyne gum in Britain to offset a slump in chocolate sales. In the last fiscal year, the company increased its stake in the Kent confectionery- maker in Turkey. Intergum had sales of $109 million in 2006.