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Business & commercial law purchases enhance buyers’ diversity

Oregon has its fair share of commercial law transactions that contain an international aspect. Many companies that are worldwide leaders in their industry purchase a segment of another company to enhance a division of the purchaser’s operations. In some business & commercial law transactions, the larger company may purchase the total assets of a smaller company. Such purchases are made to diversify the larger company’s product line or to add elements to an operational division that are thought to be necessary to increase production and/or sales.

Many such transactions take place regularly throughout the United States and abroad. Usually, the proposed purchase must pass applicable regulatory investigations. One recent purchase is indicative of many such acquisitions. The world’s biggest chocolate and cocoa product maker, Barry Callebaut AG, recently bought a specialty chocolate manufacturer, Gertrude Hawk Chocolates. One factor in the transaction may be that many chocolate makers and sellers have been struggling with reduced demand for chocolate due to consumer health concerns.

The giant Swiss company announced that the purchase allows it to expand its product line into new markets and services that are seeing greater growth. Barry Callebaut has a gourmet and specialties division that sells premium ingredients for chocolate and bakery products. It has proved to be the company’s fastest growing division, and the purchase of Gertrude Hawk is intended to enhance that division’s products and sales.

Part of the sale gives the buyer a state-of-the-art factory in the United States and 370 workers who are included. Barry Callebaut has been purchasing numerous smaller gourmet food companies for the same purpose. The company’s main business is in selling ingredients to giant candy retailers like Nestle` and Hershey’s, but that part of the industry has had slow growth in comparison to the more rapid percentage growth of the gourmet and ice cream products divisions. Business & commercial law attorneys worldwide, including some in Oregon, are an integral part of the process of making such transactions compliant with all regulations and legal mandates.

Source: businessinsider.com, “UPDATE 1-Barry Callebaut strengthens U.S. gourmet business“, Sept. 7, 2017

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