In March, Cadbury Schweppes
Yesterday, Cadbury Schweppes announced that it will acquire Japan's Sansei Foods for 2,750 yen per share ($22.35). Sansei specializes in sugarless candies, controlling approximately 4% of Japan's candy market. This acquisition, however, is more about technology and manufacturing methods used in making sugarless candy that Cadbury Schweppes can use around the world than about the financial strength of Sansei's Japan business.
This isn't the only acquisition Cadbury's confectionary business has pursued recently, and the company has disposed of a few units as well. In just the last two weeks, the company has gobbled up a Romanian chocolate company and a Turkish gum maker. During the first week of June, the company also sold a bulk candy maker in Canada, and sold its Australian jams business to HJ Heinz
Cadbury Schweppes' moves highlight the company's current focus on its candy business. This makes a great deal of sense; the candy business isn't as consolidated as carbonated beverages, and Cadbury already has a global supply chain into which it can plug acquisitions. Pay attention to Cadbury as it separates itself from Schweppes -- it could get pretty interesting.
For insight into values hiding abroad, check out Motley Fool Global Gains. Along with specific recommendations of promising companies, you'll also find helpful information to increase your understanding of the nuances of global investing. See how Global Gains can help you today with a free 30-day trial.
Nathan Parmelee has no ownership stake in any of the companies mentioned. HJ Heinz is a Motley Fool Income Investor selection. The Motley Fool has an ironclad disclosure policy.