Confectionery giant Mars agreed to acquire Hotel Chocolat for US$662.9 million.

Mars said it believes it is well-positioned to support Hotel Chocolat’s expansion in the UK and potentially take it into new geographies.

“We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back,” said Angus Thirlwell, CEO at Hotel Chocolat.

“By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.

Hotel Chocolat was founded in 2004 in North London by Thirlwell and Peter Harris and has since expanded into a network of 126 stores, along with cafes, restaurants, and outlet stores. It has 40 stores in Japan along with a luxury eco-hotel on its working cacao farm in the Caribbean.

“The Mars and Hotel Chocolat businesses are highly complementary, and during our discussions with Hotel Chocolat’s leadership it has also become clear that there is a very strong cultural fit – with purpose at the heart of both organizations, and a shared passion for quality and sustainability,” said Andrew Clarke, global president at Mars Snacking.

The acquisition is expected to be completed in the first quarter of FY24.