Cerealto, a prominent player in the Spanish private-label sector, has reached an agreement to divest its pasta business to the Portuguese agri-food company, Cerealis. This strategic move reflects shifting priorities towards core operations amid evolving food and beverage industry trends.
The acquisition includes the manufacturing site located in Venta de Baños, Palencia, as highlighted in Cerealto’s statement issued on February 13. Cerealis noted in a brief LinkedIn update that this facility has an annual production capacity of approximately 90,000 tonnes, underscoring its significance in the food and drink business.
While a spokesperson for Cerealto refrained from confirming the output figures, they did emphasize that the financial specifics of the transaction remain undisclosed. Approximately 125 employees at the Venta de Baños site will transition to the new ownership, ensuring job continuity during this shift.
Cerealis aims to harness “important synergies” in strategic areas following the acquisition, enhancing both scale and international competitiveness within the food and drink consumer trends arena. Meanwhile, Cerealto stated that the sale aligns with its focus on core categories such as snacking and breakfast, where it perceives the highest potential for growth. The pasta unit, while described as “profitable,” is believed to have undergone significant investment in recent years, establishing a solid foundation for future success under a specialized entity like Cerealis.
Moreover, Cerealto’s spokesperson noted that the company will now prioritize third-party manufacturing across various categories, including biscuits, cereals, snacking bars, and corn and rice cakes, extending its reach across Europe, the UK, the US, and Mexico.
In terms of operations and employment, Cerealto assured that the transaction “guarantees” continuity at the Venta de Baños facility. The statement emphasized, “No changes are envisaged to the workforce, operations, or the day-to-day activities of the business.”
Cerealto’s CEO, Bosco Fonts, remarked, “Our pasta business has been high-performing and value accretive, which has benefited from substantial capital investment in recent years. We are pleased to have met a new operator that is a specialist in pasta and has the capability to continue developing the business while retaining employment and working conditions for our colleagues in the pasta business unit.”
This agreement is pending approvals from Spain’s CNMC (National Commission on Markets and Competition) and Portugal’s AdC (Competition Authority). Once necessary authorizations are secured, Cerealto will begin a transition phase to ensure the seamless transfer of operations to the new owner. Until then, the business will continue to run as usual, fulfilling all customer commitments.
Additionally, backed by Davidson Kempner Capital Management and Afendis Capital Management, Cerealto recently acquired a majority stake in US-based Fresca Foods, a producer of snack bars and breakfast cereals, further solidifying its standing in the food and beverage sector. Cerealis has also expanded its own pasta operations, taking full control of Czech-based Europasta in September 2024 for an undisclosed amount.
This strategic maneuvering among key industry players highlights ongoing shifts within the food and drink landscape, emphasizing the importance of agility in adapting to market demands.
