In a bankruptcy court-ordered auction on May 23, Spangler Candy Co. successfully bid $18.8 million for New England Confectionery Co., the iconic maker of Necco wafers and SweetHearts.
Spangler, of Bryan, Ohio, is nearly as nostalgic, dating back to 1906 and famous for its Dum Dum lollipops, marshmallow Circus Peanuts and candy canes. There were indications, but no clear commitment, that Necco's Revere, Mass., manufacturing plant will remain open.
Spangler’s winning bid calls for $17.83 million when the deal closes and an additional $1 million paid over four months.
Bidding began at $13 million and quickly escalated. Gordon Brothers, a liquidation firm, bowed out at $17 million and investment firm Roundhill dropped out at Spangler's bid.
“We started as a family-owned candy company. We’re thrilled to work with a fourth-generation candy company that’s going to bring some new stewardship to our brand,” said Mike McGee, Necco CEO, quoted in the Boston Herald. He apparently will stay on through the summer. “We’ll work really hard to make sure we get a successful transition.”
Necco filed for bankruptcy in early April. We reported that month that Al Gulachenski, who was CEO of Necco 2011-2015, wanted to buy the company with $5-10 million of money he raises and another $20 million in crowdfunding from a GoFundMe page he set up.
