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Published in:
2020 | OriginalPaper | Chapter
18. Kraft Group (Part II): Cadbury Acquisition—Post-acquisition Performance
Authors : Eli Amir, Marco Ghitti
Published in: Financial Analysis of Mergers and Acquisitions
Publisher: Springer International Publishing
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Abstract
In February 2010, Kraft Foods, a US publicly listed company, acquired Cadbury, a leading confectionery company listed on the London Stock Exchange. In this case, we focus on measuring post-merger performance. In particular, we examine whether the growth in Kraft’s sales and income was organic (internal) or merely a result of multiple acquisitions. The analysis focuses on measuring comparable sales and income while excluding the effects of acquisitions. We also measure whether the acquisition of Cadbury was successful by looking at the behavior of certain ratios over time and by measuring the effect of cost savings.