Pharma BD Deal Intelligence

Cadbury Schweppes plc / Adams Confectionery (Pfizer division)

2003 · Asset Purchase · $4.2B · Complete

CALLED IT — OFF BY 8

Adams made Cadbury the world's largest confectioner and hit its return targets early, but two decades on the gum category it bought into structurally shrank, and the brands were eventually sold off for a fraction of relevance.

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The coverage arc

Dec 17, 2002 ConfectioneryNews Neutral

Investec's Michael Landymore called it 'a reasonable price, and a good strategic move,' though Euromonitor flagged Adams' 40% Latin America revenue…

Apr 01, 2003 Lexpert Neutral

Cadbury Schweppes acquired 100% of Adams from Pfizer for $4.2B cash (including $450M of expected tax benefits); the divestiture was tied to Pfizer's Pharmacia…

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Cadbury Schweppes acquired the Adams confectionery business -- including the Halls, Trident, Dentyne, and Chiclets brands -- from Pfizer for $4.2 billion in cash. Pfizer divested the unit as part of its Pharmacia integration and consumer-health rationalization, while the acquisition vaulted Cadbury Schweppes to the world's number-one confectionery position with roughly 10% global share and long-sought U.S. scale.

Did it work? Outcome assessment

Adams made Cadbury the world's largest confectioner and hit its return targets early, but two decades on the gum category it bought into structurally shrank, and the brands were eventually sold off for a fraction of relevance.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
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