Stockholm, Sweden-based Cloetta will acquire Candyking Holding AB, a leading supplier of pick-and-mix candy in the Nordic countries and the United Kingdom, the company announced last Friday.

The acquisition strengthens Cloetta’s position within the pick-and-mix segment and creates substantial synergies, its press release says.  The move reflects Cloetta’s strategy to grow within the category given its importance and continued expansion in many countries.

”The acquisition of Candyking will significantly strengthen Cloetta’s position in Denmark, Norway and the United Kingdom” says Danko Maras, cfo and outgoing ceo a.i., of Cloetta. “Cloetta will be able to develop the Candyking brand and product offering, in order to offer an attractive customer and consumer experience. The acquisition will also strengthen our position in natural snacks with the Parrot brand. In addition, there are substantial cost synergies that make the acquisition attractive.”

Candyking offers stores a complete concept in pick-and-mix candy including products, displays and accompanying store and logistic services. Candyking itself does not manufacture any products, instead it purchases products from different suppliers. The company currently supplies about 8,000 retail outlets in seven countries. Sweden, the United Kingdom, Norway and Denmark are the largest markets. Other markets are Finland, Ireland and Poland. In total Candyking has 370 employees.

Candyking’s total sales (including Danish tax) amounted to SEK 1.3 billion ($144.93 million) on a rolling twelve month basis per the third quarter of 2016. Its brands include Candyking, Karamellkungen and Candyking Favourites. The company is also a leading pick-and-mix supplier of natural snacks in Sweden and Finland under the Parrot brand.

The acquisition is expected to create substantial synergies that will gradually be realized during the next three years, Cloetta says. Its 2016 sales were $652.4 million.