January 19, 2010 / 3:39 PM / in 8 years

Factbox: Kraft/Cadbury combined vital statistics and history

LONDON (Reuters) - Kraft Foods is set to buy Cadbury in an 11.9 billion pounds ($19.6 billion) deal after the U.S. food giant raised its offer, winning over management at the British confectioner and ending a four-month standoff. [ID:nL9294700]

Following are details of the deal and vital statistics of the combined company:


* Combined group will be number one in the chocolate and confectionery industry by revenue, overtaking Mars

* Combined revenues of close to $60 billion in 2008 mean Kraft remains world’s second biggest food group behind Nestle

* Group will have 40 confectionery brands that each have annual sales in excess of $100 million

* Will have leading position in developing markets, including in Brazil, Russia, India, China, and Mexico

* Cadbury brands such as Dairy Milk bars, Roses chocolates, Trident gum and Halls cough drops join Kraft products such as Toblerone and Milka chocolate bars and Oreo cookies


* Cadbury shareholders will receive 500 pence cash and 0.1874 new Kraft share for each Cadbury share.

* For each Cadbury ADS, shareholders will receive 2,000 pence and 0.7496 new Kraft share.

* Offer equates to 840 pence per Cadbury share and 3,360 pence per Cadbury ADS, based on a Kraft share price of $29.58 (January 15 closing price) and an exchange rate of 1.63 dollars to the pound.

* In addition, Cadbury shareholders will get 10 pence per share by way of a special dividend

* Offer values Cadbury at approximately 11.9 billion pounds

* Offer represents a multiple of 13.0 times Cadbury’s underlying 2009 EBITDA

* Kraft to reduce the number of acceptances required from 90 percent to 50 percent plus one Cadbury Share

* Final offer does not require the approval of Kraft shareholders

* Full acceptance will result in the issue of 265 million new Kraft shares, representing 15 percent of its enlarged share capital

* Cadbury says considers offer fair and reasonable


* Kraft sees pretax cost savings of at least $675 million annually realized by the end of the third year at an implementation cost of $1.3 billion

* Accretion to earnings per share in 2011 of approximately $0.05 on a cash basis

* Kraft sees return on investment well in excess of its cost of capital

* Kraft expects to revise long-term growth targets to 5+ percent for revenue and 9-11 percent for earnings per share from 4+ percent and 7-9 percent respectively

* Increased scale for both companies in developing markets such as Brazil, Russia and China, where Kraft has a stronger presence, and India, Mexico and South Africa, where Cadbury holds leading positions


* Kraft has given assurances that existing contractual employment rights, including pension rights, of all Cadbury employees will be fully safeguarded

* Lazard & Co., Centerview Partners UK LLP, Citigroup, Deutsche Bank acted as financial advisers to Kraft

* Goldman Sachs, Morgan Stanley & Co and UBS acted for Cadbury

* Cadbury shareholders who wish to accept the offer must take action by 1300 GMT on February 2

(Compiled by Paul Hoskins)

$1 = 0.6086 pound

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below