The British chocolate maker Hotel Chocolat will be acquired by American food giant Mars on Thursday for £534 million ($662 million), as the company looks to expand globally.
The news caused shares of Hotel Chocolat, which is listed on the London Stock Exchange, to soar more than 160% in early trading.
The deal, according to Hotel Chocolat, will enable the brand to grow “further and faster.” The company was founded 20 years ago with the goal of bringing ethical, reasonably priced luxury chocolate to the high street.
In an effort to expand its global reach, American food giant Mars announced on Thursday that it will purchase British chocolatier Hotel Chocolat for £534 million ($662 million).
The deal, according to Hotel Chocolat, will enable the brand to grow “further and faster.” The company was founded thirty years ago with the goal of bringing luxury chocolate that is ethical and reasonably priced to the high street.
“We are aware that consumers abroad connect with our brand, but operational supply chain difficulties have prevented us from progressing. “We can expand our global reach considerably faster by collaborating with Mars,” a statement was released by Angus Thirlwell, co-founder and CEO.
Following the announcement, shares of Hotel Chocolat, which is listed on the London Stock Exchange, shot up more than 160% in early trading to 366.50 pence by 9:30 a.m. local time on Thursday.
With his multimillion-pound bid, Mars is offering to buy 375 pence per share.
Hotel Chocolat is mostly based in the United Kingdom; it has 124 stores there and a few more abroad.
Its global expansion has encountered challenges. After closing its high street stores in the United States for several months, it stopped selling direct-to-consumer products online in September of 2022. According to Thirlwell, “operational supply chain challenges” have prevented the brand’s expansion thus far.
The chocolatier also owns an estate in Saint Lucia that houses the Rabot Hotel, a luxurious eco-resort, and a 140-acre organic cocoa farm.
Global president of Mars Snacking Andrew Clarke said in a statement, “We are confident that Mars will be an excellent long-term home for Hotel Chocolat, providing a like-minded, entrepreneurial and purpose-led environment in which to maximize the potential of the Hotel Chocolat brand which is already so beloved by consumers.”
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