The multi-million pound offer for the British chocolate company represents 145p a share, a premium of approximately 42.9 percent over the closing middle market price of 101.5p on June 19 (the business day immediately prior to the commencement of the offer period).
Thorntons published poor sales figures and has seen its profits falling in recent months, which led to the company issuing a profit warning in December last year
“Ferrero is offering our shareholders an attractive premium to the average price of Thorntons’ shares over the last three months,” Paul Wilkinson, Chairman of Thorntons said in a statement. “Although the prospects for Thorntons as an independent company remain strong as the Company embarks on the next phase of its strategy, the Board of Thorntons also recognises the potential benefits to the brand and the business, including employees and all stakeholders from combining with the Ferrero Group.
“Ferrero is a successful global confectionery business with a strong family heritage and as such represents a good cultural fit for Thorntons. The Board of Thorntons therefore has given its unanimous recommendation for the Offer from Ferrero.”
Thorntons was founded by Joseph William Thornton in 1911 and has grown substantially since then with 242 stores in the UK and Ireland.
Thorntons published poor sales figures and has seen its profits falling in recent months, which led to the company issuing a profit warning in December last year.
Ferrero is best known for products such as Nutella chocolate spread, Kinder Eggs and the spherical chocolate Ferrero Rocher.
Commenting on the offer, Ferrero chief executive Giovanni Ferrero said in a statement: “Our business was founded nearly 60 years ago out of a passion for chocolate and with a commitment to quality. We delivered our best ever results in the UK in 2014, giving us confidence that now is the right time to broaden our roots in this important market.
“This transactions brings together two highly complementary businesses, but more importantly it unites two companies that share the same passion for growing brands, and a proud heritage, drive and culture built upon their family foundations.
“We have long admired Thorntons and what they have achieved in the UK as demonstrated by their tremendous customer loyalty, and we look forward to working with their experienced team.”