Lindt set to take over US candy company

Lindt, the Swiss chocolate-maker, is close to securing a takeover of Russell Stover, the third-largest US candy company by sales, in a deal that would shake up the country's sweet-toothed consumer goods market.

The two firms are in advanced discussions and could announce a deal as early as next week, according to people familiar with the matter. It is unclear if an exact price has been agreed, but a figure of close to $1.4 billion is being discussed, they said.

The talks are ongoing and no deal is certain, however.

The acquisition of Russell Stover, with annual sales of about $600 million, would give Lindt a firm foothold in the US. The family-owned company’s products are a staple of the boxed-chocolate market and standard issue for many would-be Valentine’s day charmers.

The Ward family put Russell Stover up for sale earlier this year and have been working with Goldman Sachs, the investment bank, to find a buyer. The process attracted a number of private equity and strategic buyers, including Hershey and Godiva.

Shares in Lindt, which has a market capitalisation of SFr12.5 billion, have risen 14 per cent so far this year.

– (Copyright The Financial Times Limited, 2014)