Huhtamaki, a listed Finnish multi-branch firm, reorganised its confection sector by selling its North-American confection business (Leaf North America) to the US-based Hershey Foods Corporation and simultaneously acquiring Hershey's European confection business, i.e. Gubor Schokoladen and Sperlari S. r. l..
Leaf North America had a turnover of around 460 million US dollars last year and Hershey paid 440 million US dollars for the units. Gubor and Sperlari together had a turnover of around 210 million US dollars and Huhtamaki paid 110 million US dollars for the companies.
Leaf's result in North America has been less than that in Europe and correspondingly Hershey's European units have constantly made a result less than that of its US units. By switching units both firms hope to achieve improved results.
The reorganisation gives Huhtamaki a good chance to concentrate on developing Leaf in Europe and Asia.
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ARTICLE
17 January 1997