Brazil’s M. Dias Branco has agreed to acquire a majority stake in domestic bakery business Grespan Pães Congelados.

The deal, struck for an undisclosed sum, marks M. Dias Branco's entry into the frozen bread market.

The pasta and biscuits manufacturer is buying 80% of Grespan, with an option to buy the remaining stake within five years of the deal closing.

Founded in 2009, Grespan manufactures and sells frozen bakery products, primarily to customers across Brazil's south-eastern and mid-west regions.

The business, headquartered in Marília, in the state of São Paulo, generated gross revenue of approximately 139m reais ($27.4m) last year.

In a statement, M. Dias Branco said frozen bread is a category that “complements” its current portfolio and belongs to a market with “significant growth prospects”.

“The acquisition is aligned with the company’s strategy of strengthening its presence in categories adjacent to its core business, expanding its presence in the bakery market and broadening its food platform,” the statement added.

The acquisition comes as softer earnings weigh on the listed group despite continued volume growth.

In the second quarter of 2026, M. Dias Branco recorded net revenue of 2.7bn reais, down 1% compared to the prior-year period.

Net income dropped 22% year-on-year to 169m reais, while EBITDA fell 18% to 284m reais.

The company’s sales volume, however, grew 4% to 477,000 tonnes, marking its fourth consecutive quarter of volume expansion.

Across the first half of 2026, sales volume rose 4% to 885,000 tonnes, while net revenue dipped 0.3% to 4.9bn reais.

In 2025, M. Dias Branco's net revenue grew 8% to 10.4bn reais, supported by a 3% increase in total sales volume to 1.81 million tonnes.

Full-year net income edged up 2% to 660m reais, while EBITDA declined 8% to 1.1bn reais.