Cadbury Schweppes Divests Non-Core Businesses

6/6/2007

Confectionary giant Cadbury Schweppes plans to divest three non-core businesses as part of a strategy to achieve its 250 million disposal target outlined for the end of 2007. It will sell its Australian jams, toppings and jellies business to H. J. Heinz Company Australia Limited for $70 million (29 million) in cash. Completion of the disposal is expected to occur early in the third quarter of 2007. The sale includes the grant of a license to use the Cottee's and Rose's brands in certain categories (expressly excluding confectionery and beverages) in Australia and New Zealand. Cadbury Schweppes will continue to be the brand owner and sell its range of Cottee's cordial.

"This is a good acquisition for us," says H.J. Heinz Managing Director Peter Widdows, "It allows Heinz Australia to offer an even greater range of products to our retail and foodservice customers and is a good fit with our existing product portfolio."

In addition, Cadbury Schweppes has completed the sale of Allen Candy and Cadbury Italia. Allan Candy, a Canadian bulk and seasonal candy business, was sold to a company newly incorporated for the purpose, The Allan Candy Company Limited, for up to $22 million (10 million. Cadbury Italia, an Italian confectionery business, was purchased by Leaf Italia SRL for 9 million (6 million).

According to Ken Hanna, chief financial officer, Cadbury Schweppes, "Once all these transactions are completed, we will have raised over 200 million from our program of non-core disposals. We remain on track to deliver our target of around 250 million from this initiative by the end of this year."