Information on the Target

The newly established Candy Factory Group is a key player in the Italian confectionery market, formed through the collaboration of two well-established companies: Casa del Dolce and Liking. This investment is backed by the Castellazzi family, founders of Casa del Dolce, and the Corno family, founders of Liking, both of whom will maintain a significant minority stake in the group.

Casa del Dolce, founded in 1950 and based in Fara Gera d’Adda (BG), specializes in the production and marketing of children’s confectionery products. With a commitment to creativity, innovation, and customer-centricity, the company has successfully expanded within Italy and internationally, offering a diverse range of confections alongside their flagship product, ‘Trinketto’. Meanwhile, Liking, established in 1910, evolved from a small artisanal workshop into a significant industrial entity with a 16,000 square meter production facility in San Martino di Lupari (PD), where it produces a variety of confections including hard and filled candies, toffees, organic candies, and tablets.

Industry Overview in Italy

The Italian confectionery industry has shown resilience and growth, driven by both domestic consumption and exports. Known for its rich culinary heritage, Italy has a strong market for sweets, comprised of a mix of traditional and innovative products. In recent years, there has been a noticeable shift towards healthier options, and companies are responding by developing organic and low-sugar solutions to meet evolving consumer demands.

Italy is home to numerous small and medium enterprises (SMEs) that specialize in various segments of the confectionery market, indicating a competitive landscape where both localized and international brands coexist. The industry benefits from Italy’s robust distribution networks, which include both traditional retail channels and online platforms, enabling products to reach a broad audience effectively.

Moreover, the growing trend of sustainability and socially responsible business practices has compelled companies to integrate Environmental, Social, and Governance (ESG) considerations into their operations, further shaping industry dynamics. As a result, firms are not only striving for profitability but are also becoming more mindful of their impact on society and the environment.

In this context, Candy Factory aims to establish itself as a leading industrial platform within the confectionery sector by leveraging the complementary capabilities of its founding companies. The focus on product portfolio integration aligns with market trends and consumer preferences, thereby poised for success.

The Rationale Behind the Deal

This strategic merger aims to create a leading Italian confectionery group that harnesses the strengths of both Casa del Dolce and Liking. By integrating operations, the group seeks to enhance its product offerings and expand into new markets through a comprehensive range suited for all ages and occasions.

The deal is also driven by the potential for synergies in production and distribution, facilitating greater operational efficiency and improved market positioning. Furthermore, the ambitious growth plan includes new product development, geographical expansion, and a commitment to ESG practices, positioning Candy Factory favorably in a competitive market.

Information About the Investor

FVS SGR, a financial management company controlled by Veneto Sviluppo, has launched the PMI 2 Development Fund which focuses on investments within the Triveneto region. With a history of successful investments in SMEs, FVS aims to foster growth and integration among competitive firms in the region.

Clessidra Capital Credit SGR operates independently within the investment landscape and is a subsidiary of Clessidra Holding SpA. The firm intends to support mid-sized Italian enterprises through flexible financing and minority stake investments, demonstrating a commitment to sustainable growth while enhancing the potential of its portfolio companies.

View of Dealert

This strategic aggregation within the Italian confectionery sector through the formation of the Candy Factory Group appears to be a sound investment opportunity. The combined strengths of Casa del Dolce and Liking create a powerful entity that can take advantage of operational synergies and broaden its market reach.

The anticipated growth plan, bolstered by specific initiatives for product diversification and geographical expansion, indicates a proactive approach to capturing market share in an industry buoyed by consumer interest in sweets. Moreover, the focus on ESG compliance is increasingly becoming a critical factor for investors, making Candy Factory a potentially appealing choice for stakeholders looking at sustainable ventures.

Furthermore, the backing from reputable investors like FVS and Clessidra lends credibility and financial stability to the venture. Their expertise in fostering growth in the SME sector will likely support Candy Factory in navigating market challenges while seizing new opportunities.

Overall, while market conditions and consumer tastes are always evolving, the formation of Candy Factory positions it well to adapt and thrive, suggesting this could indeed be a promising investment in the confectionery landscape.

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