Cadbury breaks-up business in two parts
By Our Corporate Bureau | 16 Mar 2007
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Cadbury's chief executive Todd Stitzer has confirmed plans to split the business in two parts. The beverages business, which includes Dr Pepper and 7Up, would be separated from the confectionery division, ending its four decades as a combined company.
The soft drinks business is estimated at around £7 billion while the confectionery unit is valued at £9 billion. The combined company currently has a stock market value of £12.6 billion.
Although analysts see a sale of the beverages business as the most likely option, the company said it has not decided whether the unit would be sold or floated separately in the US. The company will make further detailed announcements in June. The private equity houses Kohlberg Kravis Roberts, Lion Capital and Blackstone are all said to be interested in Cadbury's beverages business. Analysts said the confectionery business too could be snapped up. The food group Kraft is being mooted as a potential buyer, along with US confectionery company Hershey.
The soft drinks business is estimated at around £7 billion while the confectionery unit is valued at £9 billion. The combined company currently has a stock market value of £12.6 billion.
Although analysts see a sale of the beverages business as the most likely option, the company said it has not decided whether the unit would be sold or floated separately in the US. The company will make further detailed announcements in June. The private equity houses Kohlberg Kravis Roberts, Lion Capital and Blackstone are all said to be interested in Cadbury's beverages business. Analysts said the confectionery business too could be snapped up. The food group Kraft is being mooted as a potential buyer, along with US confectionery company Hershey.
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