Hotel Chocolat Group have announced that they have reached an agreement on the terms of a recommended £534m cash acquisition by Mars.
Under the terms of the acquisition, each Hotel Chocolat shareholder will receive 375p in cash.
The Cash Offer represents a bumper premium of approximately 169% to Hotel Chocolat’s share price of 139p yesterday. Hotel Chocolat shares were 162% higher at 365p at the time of writing.
The bid has taken Hotel Chocolat shares back to a level not seen since mid-2022.
Mars said it has long admired Hotel Chocolat’s credentials as a contemporary, premium brand with high-quality products and strong direct-to-consumer capabilities.
Hotel Chocolat recently released full-year results revealing a 10% decline in revenue and a sharp drop in EBITDA.
Mars considers itself well-positioned to support Hotel Chocolat’s next growth phase, providing an enhanced platform for UK and potential international growth. The chocolate giant believes it can provide Hotel Chocolat with better access to long-term capital and a supportive environment to achieve its strategic objectives.
Lazard and Liberum are advising Hotel Chocolat on the deal