Theo Chocolate Announces Intent to Merge with American Licorice Company

Theo Chocolate (Theo), a pioneer in organic andbfair-trade chocolate, announced its intent to merge with American Licorice Company (ALC).

This proposed transaction follows Theo’s strategic decision to restructure its operations,

underway now, which will result in the closing of its Seattle manufacturing and reductions

in office staff.

Over the past 18 years, Theo has grown from a local Seattle company to a nationally

distributed brand. Today, Theo enters a new way of doing business to ensure the future of

the company. As part of ALC, Theo would join their portfolio of organic and better-for-you

brands, including TORIE & HOWARD and ZING BAR. Theo’s commitment to deliver

delicious, organic, ethically sourced (fair trade) chocolate will remain unchanged, with

continued availability to consumers online and at retailers nationwide.

Separately from the planned combination with American Licorice, in the second quarter of

2023 Theo began a plan to restructure its operations. “Like other businesses, we are

contending with rising costs across all aspects of our manufacturing and supply chain,

requiring us to change. We’ve had to make some tough but necessary decisions to ensure

the company’s long-term viability,” said Etienne Patout, CEO of Theo Chocolate.

As a result of closing its Seattle manufacturing and relocating parts of business operations,

approximately 60 Theo employees will be separated in the second half of 2023. Theo will

continue its longstanding presence in Seattle through its headquarters, Flagship Store and

Confection Kitchen.

“We are incredibly grateful for our dedicated team members who have championed Theo’s

mission,” said Patout. “We are committed to supporting those impacted by the transition

ahead. Impacted employees were offered a severance package, including COBRA medical

coverage and payouts of PTO balances, as well as access to mental health and job search

resources.”

The operational changes are in process and the proposed transaction is expected to close in the third quarter of 2023.