Swiss chocolate-maker Lindt to buy Russell Stover

 
Billy Ehrenberg
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Swiss chocolate-manufacturer Lindt is in talks to buy Russell Stover (Source: Getty)

Swiss chocolate-manufacturer Lindt has confirmed a takeover of Russell Stover to create the third-largest chocolate manufacturer in North America.

Although there is no concrete information on a price, the US company could be valued at $1.4bn, according to the Financial Times.

Lindt is looking to make a move into the US confectionery market, and the acquisition of Russell Stover, which records annual sales of roughly $600m, would provide such a foothold.

Stover was put up for sale earlier this year, with Goldman Sachs employed to find a buyer.

Lindt has differentiated itself by focusing solely on quality chocolates and not diversifying into other products.

Its chocolates are distributed in over 100 countries, and a deal with Russell Stover would be a clear effort to expand further beyond the European market.

Russel Stover has been producing chocolate since 1923 when it was founded in Denver. Its most recent annual revenues were $500m, according to Lindt.

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