- Mars is offering almost $700 million to buy Hotel Chocolat.
- The British company was founded 30 years ago by Angus Thirlwell and Peter Harris.
- They stand to become about $180 million richer if the deal goes ahead as expected.
The cofounders of Hotel Chocolat stand to become about $180 million richer after Mars offered to buy the upmarket chocolatier for £534 million ($673 million.)
Angus Thirlwell and Peter Harris, who founded the British company 30 years ago, are still the CEO and development director respectively.
Hotel Chocolat’s high-quality chocolate treats have also been popular in the US and Japan, although sales have struggled in recent months and the company fell to a small loss for the year to July.
Thirlwell stands to make £91 million ($112 million) and Harris £53 million ($65 million) from the Bounty and Mars maker’s offer. The CEO intends to invest most of his stake back into the business, while Harris is largely selling out and retiring.
Hotel Chocolat listed on the London Stock Exchange in 2016 and peaked at £5.26 ($6.34) a share in late 2021, but the stock has struggled since then.
Mars’ £3.75 ($4.66) a share offer is a huge 170% premium to Wednesday’s closing price, and shares surged to £3.62 ($4.50) after the offer was announced Thursday.
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Thirlwell said in a statement: “Hotel Chocolat’s brand destiny is to become a leading premium chocolate brand in major markets through reinventing chocolate for people and nature. In Mars we have found a true meeting of minds – in strong cultural values, bold strategy and true long-termism.”
Andrew Clarke, global president of Mars Snacking, said both businesses were “highly complementary” and there was a “very strong cultural fit,” adding: “We are very excited to support Hotel Chocolat’s next phase of growth.”
Thirlwell will remain CEO of the business.
Mars would keep the company “special” while helping it grow, Clarke told Bloomberg, including opening more Hotel Chocolat stores in the UK. It has 131 stores sites already, a further 21 in Japan operated by a partner, as well as an online operation.
Analysts at Peel Hunt in London described the offer as a “knockout bid” and expected the deal to go through.
“Hotel Chocolat has been in and out of international growth: there is certainly a strong brand for it to work with, and we would expect Mars to reignite the overseas ambition here,” they added.
