SWITZ/SINGAPORE: Barry Callebaut buys Petra Foods' cocoa arm
Deal will boost Barry Callebaut volumes in LatAm and Asia by 65%
The Switzerland-based group, which supplies cocoa and chocolate products to some of the world's largest chocolate brand-owners, said the acquisition would help boost its presence in developing countries.
"A stronger integrated position in sustainable cocoa sourcing and processing is important to keep growing our chocolate business over-proportionally, especially in emerging markets," Barry Callebaut CEO Juergen Steinemann said.
The acquisition, which is expected to close next summer, will boost Barry Callebaut's sales volumes in Asia and Latin America by almost two-thirds. Those regions would now account for 31% of Barry Callebaut's two volumes, it added.
The deal includes seven plants in Asia and Europe and sales offices in Singapore, the Netherlands and the US.
EBITDA from Petra Foods' cocoa division fell 29% in the first nine months of the year on the back of a 20% slide in sales. Petra Foods blamed "weak" global chocolate consumption.
In 2011, sales and EBITDA increased amid "strong demand" and improved earnings from its operations in Europe. Cocoa ingredients accounted for 75% of Petra Foods' sales and over 50% of its EBITDA in 2011.
Petra Foods CEO John Chuang said the company "maintains a strong emotional attachment" to its cocoa division but said the sale would "unlock substantial value" for shareholders.
The company plans to focus on strengthening its branded consumer business in Asia.
Shares in Barry Callebaut were down 2.55% at CHF917 at 10:33 CET this morning.
Petra Foods' shares jumped 20.36% to S$3.31 at 17:04 local time.
Click here to read an update on how the company believes the acquisition will boost Barry Callebaut's growth, and here for comment from the company on the reasons it believes in the deal.
Barry Callebaut Belgium should strengthen its business relationships with chocolate manufacturers in Belgium. The company is expected to move onto subcontracts for international key players and privat...
Formed only in 1996, Barry Callebaut has become one of the world’s leading cocoa and chocolate ingredients suppliers through strategic acquisitions and investments. It is securing its future by invest...
Against all expectations, chocolate confectionery has offered an increasingly wide product range over the last couple of years, at least in the mass market. In spite of the good reputation for quality...
Following a sluggish performance in 2009-2010 during the tough economic climate, packaged food picked up in terms of value growth in 2011, as consumer confidence and spending strengthened. Fears of a ...
- SIAL 2014: Greek yoghurt firm Fage targets Europe
- On the money: Spreads, ice cream top Unilever woes
- Focus: Will Danone return to growth in dairy?
- Why Nestle is relaxed about the China "drag"
- Growth question hangs over refocused Premier
- SIAL 2014: Premier in talks over US manufacturing
- Kellogg, Nestle slammed for "chaotic" salt policy
- Premier cautious on profits after Q3 sales slide
- Mars puts R&D at centre of US plant expansion
- Italy warns of EUR200m hit from Russia ban