Recently-formed private-label business European Bakery Group has snapped up Ireland-based bakery Panelto Foods.

Financial details were not disclosed.

European Bakery Group was formed in May when Netherlands-based Dutch Bakery and Germany’s Coolback joined forces. The former had been majority owned by UK private-equity and venture-capital firm 3i Group since 2021, the firm which now owns European Bakery Group.

Headquartered in Longford in Ireland, Panelto Foods will join the group and establish the UK and Ireland platform within the newly-formed bakery business, according to 3i.

Founded in 2004, Panelto Foods manufactures frozen bake-off breads and produces more than 5 million bread products per week. The company has around 300 people across two bakeries with three production lines.

The news follows Panelto Foods’ deal with major retailer Lidl in May, which was worth a reported €22m ($24m). The deal will bring their baked bread to Lidl stores across Ireland. They will also have their bread stocked in more than 950 Lidl stores throughout the UK.

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By GlobalData

Brian O’Grady, CEO at Panelto Foods, said: “Together, we will be able to reach new markets, capitalise further on the growth opportunities within the UK, Ireland and Europe and benefit from the size and scale of the combined platform.”

Raoul Vorage, CEO of the pan-European business, described Panelto Foods as an “excellent fit for European Bakery Group with complementary product assortments and geographies.”

He added: “We look forward to partnering with Panelto Foods and continue to execute on the international growth strategy of European Bakery Group.”

Partner at 3i Bastiaan Peer added: “The combination of Coolback, Dutch Bakery and Panelto Foods firmly establishes a high-quality pan-European platform in the fragmented European private-label market for bake-off bread, which has been at the core of our original investment thesis.

“With Panelto Foods, European Bakery Group further expands its footprint, diversifies its customer base, and further strengthens the platform for continued organic as well as inorganic growth.”