Quadrant buys Australia, New Zealand candy brands from Nestle
Quadrant Private Equity has agreed to buy a portfolio of candy brands manufactured in New Zealand from Nestle for an undisclosed sum.
The brands, which include the internationally known Life Savers along with product lines marketed only in New Zealand, will be consolidated under Darrell Lea, the Australian candy maker acquired by Quadrant earlier this year at a valuation of A$200 million ($160 million). Darrell Lea plans to move production for Life Savers to Australia but will continue making the smaller brands in New Zealand, according to a release.
Nestle undertook the sale in order to refocus its business in Oceania on culinary products such as soup, recipe mixes and its global portfolio of professional food service products. The candy brands, particularly the local products, were seen as less suited for expansion. Up to 55 people from Nestle’s New Zealand factories are expected to be made redundant as a result of the sale; Darrell Lea plans to offer any affected employees positions at another factory in New Zealand.
Darrell Lea was founded in 1927 and acquired in 2012 by Australian entrepreneur Tony Quinn, the founder of VIP Petfoods, and his wife. Quinn, who sold VIP to Quadrant in 2015, decided to partner with the PE firm again in order to continue growing Darrell Lea both domestically and overseas. The company is best known for a range of chocolate and licorice products that are sold in Australia, New Zealand, the US, Canada, and the UK.
Quadrant is investing its latest mid-market Australia and New Zealand fund, which closed in December at A$1.15 billion. The firm targets companies with enterprise values of A$100-500 million, committing A$70-150 million per investment.
In recent years the GP has focused on building a handful of platforms in Asia and Australia, such as family entertainment-focused The Entertainment & Education Group, tourism business Experience Australia, and gym operator Fitness & Lifestyle Group.
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