Cadbury's plans Turkish deal

Cadbury Schweppes today announced plans to acquire a minimum 51% equity stake in Kent, Turkey’s premier sweets and confectionary firm.

The drinks and chocolate giant will also buy a majority interest in Birlik, Kent’s distribution arm, for £67m (€110m) cash and assumed debt.

Cadbury’s chief executive John Sunderland said: ‘‘Partnership with Kent provides a strong platform in a key emerging market with direct links to adjacent regions where we successfully operate such as Africa, the Middle East and Russia.’’

The deal will also provide Cadbury Schweppes with access to potentially high growth rates in Turkey and neighbouring countries, he added.

Kent chairman Yakup Tahincioglu said: ‘‘Cadbury Schweppes’ strong management, brand expertise and global route to market gave us the confidence to take this major step.’’

Set up in 1956 by the Tahincioglu family, Kent employs 1,000 people at its manufacturing plant near Istanbul and exports to 66 countries.

It controls 66% of Turkey’s packaged sugar confectionary market with sweets such as Olips, Jelibon and Elegan.

It also holds the second largest share - 14% - in the chewing gum sector.

The company’s estimated sales last year were $110m (€126.3m) with volume estimated at 27.1 million tonnes.

Subject to regulatory approval, the transaction should be completed in the second quarter of 2002.