Cerealto has successfully acquired a majority stake in Fresca Foods, signaling a significant expansion for the Spanish co-manufacturer into the US market.
According to investor-backed Cerealto, this strategic transaction aims to enhance both companies’ capabilities in the high-growth snacking segment.
Fresca Foods, based in Colorado, will continue to be managed by its current leadership team, retaining a significant shareholding as the financial details remain undisclosed.
Upon completion of this acquisition, North America is expected to contribute 20% of Cerealto’s annual revenues, projected at €526 million ($605.2 million).
Currently supported by Davidson Kempner Capital Management and Afendis Capital Management, Cerealto focuses on various markets across Europe, the UK, and Mexico. In addition to functioning as a co-manufacturer of biscuits, cereals, and snack bars, the company also produces for leading retailers under private labels.
Conversely, Fresca Foods specializes in producing snack bars, granola, breakfast cereals, crackers, and cookies on a contract basis.
Bosco Fonts, CEO of Cerealto, commented: “Partnering with Fresca Foods’ leadership team gives us a strong foothold in the world’s largest snacking market, shifting our business from predominantly European to truly international.”
He further noted, “The US organic snacking category is already valued at around $32 billion and is projected to grow at more than 6% annually, so this is a huge opportunity to expand our footprint globally.”
The collaboration with Fresca Foods “accelerates the scaling of manufacturing and innovation platforms,” the statement affirmed. Notably, the Spanish company operates ten production plants in four countries and employs approximately 3,200 staff members.
Last year, Cerealto acquired Hill Biscuits in the UK from private-equity firm LDC. When that deal was announced, the company reported having nine production facilities across Spain, Portugal, Italy, and Mexico.
Just Food has reached out to Cerealto to confirm the number of plants it will operate after the Fresca Foods acquisition, as well as the locations of its existing sites.
Brandon Viar, CEO of Fresca Foods, stated: “Together with Cerealto, we have the platform, expertise, and shared ambition to accelerate growth as the leading co-manufacturing and private-label snacking partner. We are truly excited for this next chapter in Fresca’s journey…”
