SWEDEN – Humble Group, a leading Swedish foodtech and FMCG group, has acquired local confectionery firm Franssons to strengthen presence in sweets and confectionery in Sweden.
Founded in 1956, Fransson is a family company based in Gränna that manufactures confectionery, chocolate foam, and jelly products.
The company’s sales and EBITDA for the 12 months to March 2022 were approximately SEK37.8 million (US$3.8 million) and SEK9.4 million (US$0.96 million).
The deal worth US$2.8 million will see Stefan Fransson continue operating and developing the company for at least three years after the completion of the transaction.
Simon Petrén, CEO of Humble, said: “The transaction is the latest in a number of acquisitions in the sweets, snacks and confectionery segment and is a new addition to Humble’s food and snacks segment.
“Through the acquisition, we further broaden our presence in sweets and confectionery in Sweden and strengthen our position across the value chain with increased capacity capabilities, especially in the production phase.”
Frasson is the latest company that Nasdaq-listed Humble has acquired in its quest to build its business portfolio.
Through acquisitions, the company now consists of more than 25 companies operating in segments such as healthy food and snacks, as well as beauty and health.
Humble CEO sees a number of potential synergies where the company will be able to offer its subsidiaries the opportunity to broaden their product portfolios and expand the availability of local production in-house.
“We also see an opportunity to be able to offer competence and resources for product innovation and development with a continued focus on high quality,” Petren added.
Last June, Humble bought another local sugar-free and vitamin-enriched candy brand Wellibites. At the time of sale, Wellbites had a strong sales growth and good profitability with Humble forecasting sales of SEK 21.1 million and EBITDA of SEK 5.1 million over the next 12 months.
Humble’s further foray into Sweets and candy comes at a time when the Europe Confectionery Market valued at US$71.05 billion in 2021 is expected to grow at a CAGR of 3.1% to reach US$82.81 billion by 2026.
According to the report by Market Data Forecast, growth in Europe which captures 35% of the global market is being fuelled by a number of factors chief among them being the introduction of odour sensations, combination of liquid & solid flavours, and energy boosts in confectionery products.
Humble Group however struggled in 2021, generating net sales of SEK1.52bn (US$160 million), an EBITA of SEK151 million (US$15.42 million) and an after-tax loss of SEK342 million (US$35 million).
With recent acquisitions bolstering its product portfolio, the company has set a proforma net sales target of SEK16bn (US$1.6 billion) and adjusted EBITA of SEK1.9bn (US$190 million) for 2025.
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