French agri-food firm Avril Group has acquired a majority stake in Italian olive oil company Costa d’Oro for an undisclosed sum.
Avril, which produces olive oil itself, said it is joining forces with the company’s founding Sabatini and Santirosi families “to create the third most important branded olive oil worldwide”.
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The group said it wants to accelerate the brand’s growth in both the Italian market and internationally, where it currently achieves half of its sales.
Avril is aiming to make Costa d’Oro – 50 years old this year – a global olive oil brand via the “conquest” of new markets such as China and North America.
Costa d’Ora produces 40,000 tonnes of olive oil a year. Its annual turnover in 2017 was EUR143.5m (US$171.1m).
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Avril suggested there are “cross-over developments” between olive oil and its condiment product ranges.
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By GlobalDataIt claimed the deal will also help it to pursue its international growth by developing its position in the olive oil market which has “considerable
potential for value creation”.
Avril said it was supported in the transaction by Castel Group, a French player in the wines, beers and soft drinks sectors. At the time of writing, officials at Avril had not returned a request for further details on the nature of that support.
“The alliance has thus reinforced the historic partnership between the two groups which initially developed around the restructuring of African oilseed sectors,” Avril said in a statement.
Olivier Delamea, the general manager of the Avril Group’s oils and condiments arm, added: “This alliance will enable the assembly of exceptional teams, know-how and products. All are advantages that will make Costa d’Oro a major Italian brand in olive oil with global reach.”
Ivano Mocetti, director general of Costa d’Oro, said: “We are very proud of this alliance with the Avril Group. Together, we will be pursuing the initial goals of Costa d’Oro in Spoleto, Umbria, by providing it with the resources it needs to conquer new markets that are not only geographical but also concern innovation that will enable the best gustatory and nutritional quality.
“Our project will also eventually develop a vertical integration of the agricultural supply chain and industrial production in Italy and the Mediterranean basin.”
Costa d’Oro’s existing management team will be staying with the business. Luciano Sabatini, co-founder of Costa d’Oro alongside the Santirosi family, remains the president and Ivano Mocetti the general manager.
In January the financing arm of Avril Group secured EUR100m (US$120m at the then exchange rate) in funding, giving it more firepower to invest in the food and farming sectors.
