Hotel Chocolat acquires joint venture


Hotel Chocolat acquires joint venture

Hotel Chocolat has announced that it has agreed to acquire the entire issued share capital of Rabot 1745 Limited which it does not already hold. Rabot was established in 2016 as a joint venture between the company and Andrew Gerrie (the non-executive chairman of Hotel Chocolat) to develop a range of beauty products inspired by the wild beauty of the Group’s Saint Lucian cacao farm and rainforest spa. The Group and Andrew Gerrie own 47 per cent. and 40.5 per cent. respectively of the issued share capital of Rabot, with the balance held by non-related parties.

Hotel Chocolat Limited has agreed to acquire the remaining c.53 per cent. of the issued share capital of Rabot, including the 40.5 per cent. owned by Andrew Gerrie, for a total cash consideration of £4.00. For the financial year ended 30 June, 2020 Rabot reported a net loss after tax of £0.4 million. On completion of the acquisition Rabot is expected to have total assets of c.£0.7 million, and liabilities of c.£0.9 million resulting in (unaudited) net liabilities of £0.2 million.

The Group will acquire Rabot’s inventories and other assets, as well as liabilities which include an outstanding loan amount owed to Andrew Gerrie totalling £744,249. The Group will settle the loan through the issue of 203,903 new ordinary shares of 0.1 pence each to Andrew Gerrie.

The Group believes it is well placed to leverage the value of the Rabot inventory and to further develop the brand’s intellectual property, which includes a range of high-quality beauty products which have attracted multiple awards and favourable customer reviews.

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