Canada's Regal Confections, which distributes global candy and chocolate confectionery brands across the country, today announced the acquisition of British Columbia-based Tosuta International Sales Ltd., an importer and distributor of gummies, sours, hard and soft candies, throat lozenges and chocolate.
Founded 43 years ago, Tosuta, which is headquartered in Langley, is well established within the convenience and gas channel, representing the Bentasil, Hi-Chew and Red Band brands. Tosuta also owns confectionery favourites, Koala and Livewires. It's an ideal fit for Regal Confections, which was founded in Montreal in 1962 as an importer of European confectionery and today distributes and manufactures a number of high-profile brands, including Tootsie Roll, Dubble Bubble, McCormicks, PEZ, Rockets and more
"For decades Tosuta has been dedicated to delivering the best quality confectionery and other fine products from around the world to the Canadian market. We selected Regal to uphold our values and foster growth for our brand partners and customers, relying on their nearly 60 years of experience in the confectionary industry," Dean MacDonald, Ppresident of Tosuta, said in a statement.
Regal outlined the goals of the strategic acquisition:
- Strengthen the presence and scope of Regal's existing gas and convenience business.
- Deepen its portfolio of brands.
- Provide entry into the throat lozenges category.
- Drive increased channel and geographic penetration by leveraging Regal's coast-to-coast infrastructure and long-standing relationships.
Hani Basile, president and CEO of Regal, said: "We've always admired and respected Tosuta's leadership and its brand positioning. Over the past few years, Dean and I have had informal discussions and we both agreed this was the right time to come together. With Tosuta and its brands in our portfolio of products, Regal will increase its presence in Western Canada and we plan on expanding upon the Tosuta team's great work on a national basis."
The transaction was made possible wth the capital and strategic support of Canadian private equity firm Clearspring Capital Partners, as well as funding from Regal's other shareholders, including senior management.
"We are impressed with Tosuta's brand portfolio, market penetration, and long track record of success," says Milap Choksey, principal at Clearspring. "This is the first acquisition since our partnership with Regal commenced late last year, and we are excited to continue supporting Regal in elevating their leadership position as an independent value-added distributor with co-packing and manufacturing capabilities."
In addition to distribution Regal manufactures peanut-free and nut-free chocolate products in Quebec under the Jean-Talon brand, as well as private label and licensed products in Canada and the US. Regal distributes fine imported and domestic gourmet foods under the Euro-Excellence and creates gift baskets under the Sweet Expressions brand. During peak periods, the company employs more than 300 people across six locations. On top of convenience, the company serves major distribution channels, including club, grocery, drugstores, mass merchants, dollar stores and specialty independent stores.