19 December 2008 - Lotus Bakeries is pleased to announce that Corona-Lotus Inc (USA) will become a 100% subsidiary of the Group Lotus Bakeries. Lotus Bakeries and its joint venture partner The Gourmet Center, which actually holds 50% of the shares of Corona-Lotus Inc, have come to an agreement by which Lotus Bakeries will become the owner of 100% of the shares of Corona-Lotus Inc.
In the mid-eighties The Gourmet Center Inc, an American company that supplies food and beverages to the airline industry, began distributing Lotus’s well-known caramelised biscuits (“speculoos”), to airline companies in the US. In response to the specific demand for the biscuits, a mail order business was developed. In 1990, Corona-Lotus Inc was founded as a joint venture between The Gourmet Center and Lotus Bakeries. Corona-Lotus Inc’s main focus was the catalog sales business. However in recent years, the company also started selling Lotus caramelised biscuits, under the Biscoff brand name, to the American retail market.
In 2007, Corona-Lotus Inc realized a turnover of USD 7.35 million. The EBIT before exchange rate results amounted to about 20 % on turnover. With growing retail sales, the company expects an internal growth of about 20 % in 2008. The transaction values Corona-Lotus Inc at about 8 times estimated EBIT for 2008 before exchange rate results. Final closing is expected in April 2009.
Last month Lotus Bakeries Group acquired Swedish company Annas Pepparkakor, which has North America as its largest market with a yearly turnover of USD 9 million. From the second half of 2009, Corona-Lotus Inc and Annas North America will be integrated.
Besides the Corona-Lotus Inc share transaction, The Gourmet Center and Lotus Bakeries have come to a long term agreement giving The Gourmet Center exclusivity for selling the Lotus speculoos to the airline industry.