Dutch confectioner Van Melle’s U.S. operation–a firm best known for its Mentos–is wrapping up a deal to acquire the lease and manufacturing assets of Candy Tech in Buffalo Grove.
Also included in the buyout, which sources say should be announced within the next few days, is a sour licorice brand called Extreme Sours.
The seller is Dave Babierz, founder of Dae Julie Inc., a Des Plaines firm that he peddled in early 1997 to Favorite Brands International. At the time, Dae Julie was a top producer of Gummi Bears, while also selling other candies, and had total annual volume of $40 million.
Favorite, which in March filed for bankruptcy protection, is being sold to Nabisco Inc.
Involved in the Van Melle-Candy Tech deal is a 130,000-square-foot facility at 151 N. Hastings Lane in the Chevy Chase Industrial Park in Buffalo Grove.
This plant this summer began producing Extreme Sours, which have been largely distributed in club and/or warehouse stores. Also being rolled out is Chips, a peg-bagged version of Extreme Sours.
Mentos, a chewy mint marketed in roll packaging, are produced and will continue to be manufactured in Holland and exported worldwide. Mentos Cool Chews–a mini-mint sold in boxes–are being introduced in the U.S.
Van Melle’s U.S. operation in Erlanger, Ky., also produces Air Heads branded confection, sold in this country.
Van Melle, whose global annual sales approximate $600 million, doesn’t plan to shift production from the Kentucky facility to Buffalo Grove. Rather, Van Melle management wants to focus its effort here on Extreme Sours and Chips, and later evaluate other products.
Babierz will keep the Candy Tech name for his import business. Bill Stepan, who has been vice president-general manager of Candy Tech, will become plant manager of the Buffalo Grove facility under Van Melle, sources said.
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