Private equity interest in the “defensive” Spanish food sector is increasing, with two deals announced in recent weeks and several others in the pipeline, according to industry observers.
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Recent deals include the Mediterranea fund’s acquisition of 49% of salads and fresh foods company Agrolito for EUR3m (US$4.3m) and ProA Capital’s takeover of sausage and frozen pizza firm Grupo Palacios for an estimated EUR300m-500m.
Industry observers expect other small and mid-size deals to emerge in the coming months.
Buy-out fund Dinamia has signalled its intention to invest in the food sector and the company hopes to channel EUR50-EUR100m into promising, cash-flow generating firms, an official reiterated.
Meanwhile, long-running speculation over Ebro Puleva resurfaced over rumours that the company is looking to sell a 30% stake to pay down debt.
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By GlobalDataIn February, Ibersuizas denied any interest in pursuing a stake in the firm, leaving UK rival 3i as the only interested party. Buy-out executives said 3i could revive an offer in the autumn.
Puleva and 3i would not comment but one Madrid-based private-equity executive said: “The market is improving and the food and other defensive sectors are definitely a priority right now. We will see more deals and the Puleva stake could very well be sold.”
