November 30, 2007
The Allan Candy Company Limited Sells Emerald Manufacturing Facility
HAMILTON, Ontario – The Allan Candy Company Limited announced today that it has reached an agreement to sell its Emerald Manufacturing Facility and associated assets in Hamilton, Ontario to a newly formed, independent entity, controlled by Mr. Aditya Jha. This new entity, named Karma Candy Inc., will focus on private label and contract manufacturing of seasonal confectionery products for the Canadian and US markets.
"With the divestiture of our Emerald Manufacturing plant, our management team and employees will focus on pursuing the growth opportunities related to our core product portfolio," said Steven Diakowsky, Allan Candy’s Chief Executive Officer and President. “This transaction is consistent with our strategic focus and direction, and the streamlined business model will provide improved ability to execute our strategic plan, including the on-going effort to finalize our separation and independence from Cadbury Adams Canada Inc.”
"Operating as a standalone business will afford the new company greater flexibility to capitalize on emerging market trends and strategic growth opportunities in the confectionery category”, Diakowsky further added. “We would like to express our sincere gratitude to our dedicated and committed employees with whom we have had the opportunity to work over the past several years. We clearly recognize the value that has been created as a result of their efforts, and we are pleased that they will benefit from increased focus under the new ownership.”
The Allan Candy Company Limited will provide transition services for an interim period following the closing. The Allan Candy Company Limited has been a manufacturer of innovative, high-quality confectionery products since 1931. It currently manufactures and sells hard candies, soft & chewy candies, count goods, retail bags, and seasonal offerings for Easter and Christmas seasons. The company offers products through confectionery distributors and retailers in Canada and the United States. The Allan Candy Company Limited is based in Mississauga, Ontario, Canada.
CORPORATE AFFAIRS CONTACT:
Amanda Gaffar, Executive Assistant
Tel: (905) 281.7870
Fax: (905) 270-7397