Archibald Candy to Buy Sweet Factory

Archibald Candy Corp., maker of Fannie May and Fanny Farmer chocolates, agreed to buy San Diego-based candy retailer Sweet Factory for $28 million to enter the market for non-chocolate candy and expand its distribution system. Sweet Factory sells as many as 200 confectionery candy products, such as gourmet jelly beans and licorice products, in 256 stores in 36 states with a self-service, pick-and-mix format. Chicago-based Archibald said in a Securities and Exchange Commission filing that it will pay for the company by issuing $30 million worth of debt. Archibald sells its candies primarily in the Midwest and East, with 317 stores and more than 8,000 third-party outlets. The transaction is scheduled to be completed this month, according to the filing. Both companies are closely held.