Quinns savour sweet $200m lolly deal
A PRIVATE equity house has forked out about $200 million for Aussie confectionery maker Darrell Lea.
Quadrant Private Equity has bought the company best known for its soft licorice and Rocklea Road products from private owners the Quinn family.
The Sydney-based private equity company was drawn to Darrell Lea’s strong brand, its dominant position in the licorice market and potential for global expansion into the US, Gold Coast Bulletin believes.
While the price paid for the operation has not been disclosed, it is believed to be about $200 million.
Darrell Lea was founded by Harry and Esther Lea in 1927 in the Sydney suburb of Manly and is now based in Ingleburn, south west of the city.
Gold Coast rich listers Tony and Christina Quinn bought the confectioner after it was put in administration in 2012.
At the time, Darrell Lea had almost 70 companyowned and licenced stores and its products were stocked in about 1800 outlets across Australia.
The group employed about 700 people across its retail network and at a factory in Sydney, but staff numbers were cut significantly following the sale of the group.
Darrell Lea’s store network was also closed that year, but the new owners pushed its products into supermarkets and different retailers.
Quadrant already has a relationship with the Quinn family, buying into its Nerang-based VIP Petfoods business two years ago for $410 million.
The pet food company was expanded by Quadrant and renamed the Real Petfood Company, which Quadrant sold last year for $1 billion to a Chinese and Singaporebacked consortium.
Among a suite of other investments, Quadrant owns retailers Super A-Mart and Barbeques Galore, and Urban Casual Dining, the company behind the Bavarian Bier Cafe chain.
According to market speculation, the existing Darrell Lea management team, led by chief executive Tim York, will remain with the confectionery group under Quadrant.