Sweet news for confectioner with £2.25m buy-out

8:31am Friday 12th January 2007

Comments (0)   Have your say »

A NORTH Yorkshire confectionery business is anticipating a busy 2007, after being acquired by a major snack food group.

Salamanda, based at Sherburn-in-Elmet Business Park, will be manufacturing a wider product range after being acquired by Kinnerton Group Ltd, a wholly-owned subsidiary of Alternative Investment Market (AIM) - listed snack food company Zetar for a total consideration of up to £2.25 million.

Kinnerton Group has acquired the entire share capital of Salamanda, which was founded in March 2004, in a deal in which York-based commercial lawyers, Denison Till, acted for the North Yorkshire company's owners and founders, Joe Horsley and Mike Flower.

Salamanda, which employs more than 30 staff, produces a range of yoghurt-coated raspberries, chocolate-coated strawberries and cocoa-dusted roasted almonds, but will now be working with Kinnerton to develop a wider range of fair trade and organic products, including healthier snack lines.

Mr Flower, who, with Mr Horsley, will remain with the business, said: "The acquisition opens important new doors for our business after bad news in the York confectionery market over the last 12 months.

"We are looking forward to the challenge."

The Denison Till team was led by managing partner and head of the corporate department Alistair Duncan, and assistant solicitor, Mike Ward, who handled all legal issues over the transfer of share capital and associated legal documentation.

Mr Duncan said: "It is rewarding to be associated with good news for the York confectionery market and we wish Salamanda well under its new ownership."