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Food companies concentrate to compete in the marketplace


Integral service around a transaction
BY : Diego GutiérrezOctober Thu, 2015
Faced with stiff competition in the food sector, both food distributors and producers are opting to grow by mergers and acquisitions. In the last half of 2015 we have witnessed several acquisitions in the Spanish food sector by international companies that are attracted by the quality of Spanish products and see Spain as an opportunity for growth. We have also seen that companies from the same group have decided to join forces to become stronger in the face of competition. Private equity has not been left behind either and has made acquisitions in the sector.

 

Large multinationals set their sights on Spain

China's industrial giant Bright Food has bought the Catalan distribution company for €110 million. Miquel Alimentació, In fact, the company has already started selling items such as olive and sunflower oil, wine, sweets and chocolate, and is already looking for a producer to market olive oil under its brand in China.

"The Chinese group, which had previously entered the markets of France, Italy, the United Kingdom, Israel and New Zealand, is taking its first step in Spain with the internalisation of Miquel Alimentació, but in the future it has plans to produce articles in Spain to sell in China under its brand name," says Diego Gutierrez of Abra-Invest

Another of the multinationals that has fully committed itself to our country is Dammwhich has bought the 24% from the restoration group Knee remaining to take over the company's 100%.

This operation is part of the agreements reached in December 2012 with the Rodilla family, from which date the German company Damm gained control of the shareholding and management of the business, going from 35 % to 76 % of its shares.

 On the other hand, Colombinaa Colombian company that sells canned fish, oils, desserts and pasta, has been awarded the purchase of the Fiesta company for €16.8 million, after beating the bids submitted by the other companies.r Risi and the investment fund Indes Capital.

In 2014, Fiesta filed for liquidation after filing for insolvency proceedings, which began with the sale of its business unit and real estate division, valued at around €20m.

Mergers between companies in the same group

Coca Cola has announced a merger of its main European bottlers under the name Coca Cola European Partners, with the aim of listing it on the Amsterdam, New York and Madrid stock exchanges, making it the largest independent bottler of the American multinational.

The new company will consist of a 48% from Coca Cola Enterprises - the independent bottler operating in European countries such as France, Luxembourg, the UK and the Netherlands, a 34% from Iberian Partners - the Spanish bottler created by the merger of the seven previous bottlers together with the Portuguese bottler - and the 18% from the Coca Cola Company - owner of the 100% from the German bottler. 

Berlys has been involved in another merger between companies of the same group with the purchase of an additional 25% of Berlys Canarias, of which it already held 56.4% since March 2014. 

"This purchase is part of our growth plan," explains José Antonio Iraizoz, CEO of Berlys Corporación. "The Canary Islands is an important market in which Berlys Canarias plays an important role and in which we are going to expand the range of products and services we offer to customers in the traditional, hotel and catering and retail markets. 

Venture capital in the food industry

In addition to the operations that we have already discussed in other posts, such as the purchase of Palaces by Carlye or IAN by Portobello we have recently learned about the purchase of the fruit and vegetable company Cutting's by Miura Private Equity.

Miura, which already had Guzmán Gastronomía's 80% in its portfolio, will integrate the two companies into a single group, although it will keep the two independent brands.

SiSM&A food: Fiesta, Conservas Taboada and Agromusa

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Panrico, Angulas Aguinaga: Spain's big food companies in international hands.

 If you are looking for financing for the food sector, please contact us. Abra-Invest has an experienced team of experts in alternative financing at your disposal. Contact us on + 34 946424142 or fill in the contact form. 

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