Europastry, a Spain-based frozen bakery business, has postponed its planned public listing due to market volatility. The company announced its intention for an initial public offering (IPO) in Spain just last month. However, recent market conditions, exacerbated by election season in Europe, led to the decision to pause the IPO process.
The €1.35bn turnover company had intended to list on several Spanish stock exchanges, including Barcelona, Madrid, Bilbao, and Valencia. The IPO was set to include a primary new share issue of approximately €225m. Additionally, investment firms connected to Europastry’s Gallés family shareholders, such as Exponent, were planning a second tranche.
Indinura, owned by Europastry CEO Jordi Morral, was also part of the secondary contingent, with the aim of maintaining the family’s controlling stake post-IPO. Europastry stated that the public offering remains a strategic objective for the company to pursue mergers and acquisitions (M&A) opportunities and international expansion initiatives.
Jordi Gallés, majority shareholder and executive vice president, emphasized the importance of the IPO in funding the company’s growth strategy, solidifying its leadership in the frozen bakery segment, and promoting sustainability in the sector through international expansion and product innovations.
Founded in 1987 and based in Barcelona, Europastry has a strong track record in M&A, with 27 production facilities serving over 80 markets. Recent acquisitions include US-based Dawn Foods’ frozen bakery business and Spanish pizza company Casa Bona. The company’s turnover grew by 20% in 2023, driven by a diverse portfolio of products including bread, pizza, pastries, and sandwiches.
Europastry’s revenue breakdown shows that retail accounted for 56% of turnover, while the out-of-home channel and B2B segment contributed 32% and 12%, respectively. The company generated an adjusted EBITDA of €205m with a margin of 15.2% in the previous year.
Overall, Europastry has achieved organic growth averaging 8.5% from 2014 to 2023, with acquisitions driving a compound annual growth rate (CAGR) of 14.5% in turnover over the same period. The company continues to focus on innovation, expansion, and sustainability to maintain its position as a leader in the global frozen bakery market.
