Thorntons in takeover bid from Ferrero

Ferrero manufactures several household names including Ferrero Rocher, above

UK chocolate company Thorntons is facing a takeover from Italian giant Ferrero SpA

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Ferrero, the Italian chocolatier responsible for iconic brands such as Nutella and Ferrero Rocher, has put in a bid to buy out UK chocolate maker Thorntons in a deal thought to be worth around €156m (£111.9m). Thorntons has been going through a sticky period recently, with chief executive Jonathan Hart stepping down following another round of disappointing earnings.

The Irish Independent reports that Thorntons had recently begun a refocus of its business from high street retailers to become a fast moving consumer goods brand, but an unexpected slump in orders have led to this latest chapter.

“Thorntons does not seem to be particularly well positioned in its sector,” Ken Odeluga, a senior market analyst at www.cityindex.co.uk, told ShelfLife today. “It is no longer perceived as a luxury brand, yet at the same time it is not currently capable of thriving on the more modest margins of supermarket brands or standalone competitors.

“So whilst the company might claim, perhaps justifiably, that discussions with Italy’s Ferrero SpA are not about anything like a ‘distressed’ sale, unfortunately, the situation does have that undertone,” Odeluga said.

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