Dutch Bakery Group, controlled by local private-equity firm Egeria, has acquired Danvo Bakeries, a local peer that has suffered during the coronavirus pandemic.
Financial terms were not disclosed. Dutch Bakery Group, which supplies grocers at home and overseas, said the acquisition of Danvo Bakeries would “strengthen its position” in the market for “packaged rustic and artisan bake-off bread”. However, not all employment roles at Danvo Bakeries will move to the new owner.
Raoul Vorage, the CEO of Dutch Bakery Group, said: “As the market leader, we are always looking for opportunities to expand and improve our range of home bake-off bread and snack products. The acquisition of Danvo Bakeries fits in with this strategy because it will substantially strengthen our presence in the rustic and artisan bake-off and home bake-off bread segment.”
Danvo Bakeries, based in Riel in the south west of the country, produces frozen bread products including mini Vienna rolls and baguettes.
Dutch Bakery Group, based only 15km north in Tilburg, said it would “integrate” Danvo Bakeries’ two production lines into its six factories. Some 80% of Danvo Bakeries’ jobs will be “retained”, Dutch Bakery Group added.
Vorage added: “Production at the Danvo Bakeries site in Riel will continue in the months ahead. At the same time, we will adapt our bakeries to accommodate the new lines. That will involve a substantial investment, but that is the best way to guarantee the quality and character of Danvo’s products and deliver the new product range. We expect to complete all the work in the third quarter of this year.”
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Egeria acquired a majority stake in Dutch Bakery Group in 2017. It said Danvo Bakeries had been "badly affected" by the Covid-19 pandemic.
Bernhard Vis, the CEO of Danvo Bakeries, added: "We supply a large proportion of our products to companies in the aviation sector and foodservice businesses. As these sectors have been hit hard by the crisis, an acquisition of our business unfortunately became inevitable. But I know that the people at Dutch Bakery share our passion for bread and I am pleased that almost the entire workforce will be moving to Dutch Bakery; I am convinced that our product range and our people will be in good hands there."