The owners of the Portuguese agri-food firm Cerealis and French pasta maker Panzani have entered talks to combine their businesses.
A statement from the two companies today (16 October) said their shareholders had entered talks “to combine Panzani and Cerealis, with the aim of creating an independent, diversified European food group”.
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Cerealis is owned by the Moreira Da Silva and Silva Domingues families, as well as Belgian investment group Sofina. Private-equity firm CVC Capital Partners controls Panzani.
Under the proposed transaction, CVC, which bought Panzani in 2022, would keep “a minority stake in the combined business”, which is valued at around around €1.8bn ($2bn), the statement said.
The deal would create a business generating roughly €1bn in annual revenue and have close to 1,800 employees, setting up “a major European food business with a strong foundation for growth”.
Based in Lyon in east-central France, Panzani has “an established presence” in its home market, the statement said, as well as the Netherlands and central Europe, specifically in pasta, couscous and sauces. The group booked €620m in revenue last year.
Cerealis meanwhile generated €400m in revenue last year. The company operates in Portugal and Spain, as well as Czechia and Poland, through products that include pasta, breakfast cereals and biscuits. It was acquired by the two families in 2021.
“The main driver of this transaction is the opportunity to build on highly complementary product ranges, technologies and expertise,” said Pedro Moreira da Silva, the executive vice-chairman of Cerealis.
“Panzani and Cerealis share the same entrepreneurial culture, a long-term commitment to their brands and markets, and a common ambition for growth. It will strengthen our capacity for innovation and create new growth opportunities for both companies.”
In the joint statement, the companies said the business combination would generate “new opportunities for growth by drawing on the companies’ respective strengths”.
Panzani and Cerealis added their “complementary product portfolios” would enable the two firms “to develop their offering beyond their existing categories, while their geographical presence would provide opportunities to introduce established brands into additional European markets”.
Under the proposed deal, the two groups would keep “a decentralised operating model, preserving the operational and industrial autonomy of both businesses”.
Cerealis executive vice chairman Pedro Moreira da Silva “would provide overall leadership” for the combined business, “leading initiatives spanning both businesses”.
Panzani would continue to be managed by its CEO Albert Mathieu, who would also oversee the combined company’s operations in central Europe.
Paula Meireles would also continue to be Cerealis’ CEO, and would oversee the new group’s Iberian and international private label business.
Mathieu said: “By joining forces with Cerealis, we would build an independent pan-European player that is more diversified, stronger and more resilient, while preserving what defines our identity: our French roots, our operations, our brands and our commitment to our agricultural durum wheat partners. It is a growth project for both our teams and our partners.”
The transaction is subject to receiving necessary regulatory approvals and “consultation of the relevant employee representative bodies”.
