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11/2023

HOTEL CHOCOLAT GROUP acquired by MARS

UNITED KINGDOM Retail / Food Retail / Fine Food / Organic EV £500M–1.5bn

Context

Mars has reached an agreement to acquire the entire issued share capital of Hotel Chocolat. The transaction is structured as an all-cash offer recommended by the Hotel Chocolat board. The deal aims to leverage Mars' global supply chain and operational expertise to solve Hotel Chocolat's international logistics challenges, allowing the British brand to scale globally. Mars views this as a strategic entry into the premium chocolate segment, complementing its mass-market portfolio. Hotel Chocolat's co-founders will reinvest a portion of their proceeds and remain with the company to lead the brand's next growth phase.

By taking control of Hotel Chocolat Group, Mars continues its expansion strategy. Previously, the group had completed 2 acquisitions, including Kevin'S Natural Foods in 2023.

HOTEL CHOCOLAT GROUP, which reported an EBITDA margin of [members only] in 2022, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a premium to the average currently observed in the Retail & Consumer sector (11.9x).

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Target

Founded in 1993 by Angus Thirlwell and Peter Harris, Hotel Chocolat is a British premium chocolatier and omni-channel retailer. The brand is known for its high cocoa content products, "less sugar" philosophy, and ethical sourcing (it owns a cacao farm in St Lucia). It operates approximately 130 stores in the UK (often with cafes), a strong online subscription business, and is famous for its "Velvetiser" home hot chocolate system.

Ent. Value

£500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

Above 20x

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2022
£150–250M
£25–50M
£10–30M
2021
£150–250M
£25–50M
£10–30M

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REFERENCES

Valuation range: EV £500M–1.5bn

Revenue range: £150–250M

EBITDA range: £25–50M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of HOTEL CHOCOLAT GROUP by MARS are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.