Cadbury Schweppes is to sell its Monkhill business to Tangerine Confectionery Ltd.

Cadbury Schweppes has announced it has signed a deal to sell its Monkhill business – which manufactures consumables such as Butterkist popcorn – to Tangerine Confectionery Ltd for £58 million.

Blackpool-based Tangerine, with products including Princess Marshmallows and Liquorice Allsorts, was created in 2006 and employs 650 people, with a turnover of more than £60 million. Monkhill will add to this sum, with its 2007 revenue expected to be around £76 million.

Steve Joseph, Tangerine Chairman, commented on the deal: “To acquire brands and products of such heritage is a mouth-watering prospect. There is no doubt that this major acquisition will significantly enhance Tangerine, creating a business with a turnover of £150 million and 1,500 employees. The combined entity will have an increased selling capability and a much wider product offering. Tangerine will be able to provide the trade and consumers with the most comprehensive sugar confectionery range available.”

Cadbury’s employs more than 70,000 people around the world, and produces brands including Dr Pepper, Trebor and Bassett.

The sale will signify the end of Cadbury’s non-core disposal programme. Announced in October 2005, all Cadbury non-core brands and businesses have now been put up for sale, raising a total of £270 million.