Europastry, a frozen bakery enterprise based in Spain, has once again postponed its plans for a public listing, marking the second time this year.
Originally, the company, headquartered in Barcelona, announced its intent to pursue an initial public offering (IPO) at the end of September, with a target listing date set for October 10. The book-building process commenced on September 27.
The initial proposal had been made in June, but the company withdrew it in July due to what it described as “heightened volatility” in the market.
In a recent statement issued on October 8, Europastry did not provide specific reasons for this latest freeze on their IPO plans.
“Europastry’s management and shareholders will continue to monitor the market environment, and the IPO remains a strategic objective for the company,” stated the announcement. The company promised that further updates regarding the transaction would be shared in due course.
Europastry aimed to list on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges, all of which have seen gains exceeding 10% this year. For instance, the Madrid Stock Exchange General Index has experienced an increase of approximately 15%, while Barcelona’s BCN Global 100 gauge has risen about 16%.
In a broader sense, the MSCI Europe Index has grown around 13% in 2024, and the STOOXX All Europe Total Market Index has climbed by about 7.9%.
In its September announcement, Europastry revealed ambitions to raise up to €555 million ($618.3 million) through the IPO, which had already received approval from Spain’s Comisión Nacional del Mercado de Valores (CNMV). The company generated €1.3 billion in turnover in 2023, with shares pegged in the indicative price range of €15.85 to €18.75.
The anticipated funds would be utilized to reduce the company’s debt and pursue potential investments for inorganic growth opportunities, including mergers and acquisitions. Founded by Pere Gallés in 1987, Europastry is a family-owned business with a strong history in M&A, operating 27 production facilities across more than 80 markets.
In its recent IPO filing, the company disclosed an acquisition made in March for DeWi Back Holding, a Germany-based producer of frozen bakery products. Additionally, in August, it acquired De Groot Edelgebak, a Dutch distributor specializing in frozen breads and pastries.
Past acquisitions include the frozen bakery segment of US-based Dawn Foods in 2022 and investments in Spanish pizza company Casa Bona in 2019, which also saw the firm take full ownership of foodservice provider Ingapan. In the same year, it acquired the Portuguese company Confeitaria Torres.
With a diverse portfolio that encompasses bread, pizza, pies, pastries, and sandwiches, Europastry reported a remarkable 20% turnover growth in 2023 and aims for a similar trajectory in the current year. By the end of June, the turnover reached €714 million, and adjusted EBITDA stood at €114 million. The company anticipates turnover growth in the low-to-mid teens for the entirety of the year.
In summary, while Europastry’s plans for a public listing appear to be on hold, the company continues to show strong performance and aims to capitalize on future market opportunities.
