Food and Beverage Business
Finance

Europastry Revives IPO Plans to Secure €555 Million

Europastry Revives IPO Plans to Secure €555 Million Europastry Food and Beverage Business

Europastry has revived its initial public offering (IPO) plans as the Spain-based frozen bakery company aims to raise up to €555 million ($618.3 million). The stock market regulator, Comisión Nacional del Mercado de Valores (CNMV), has given its approval for the IPO, with the book-building process commencing today, September 27, ahead of a projected listing date on October 10.

Headquartered in Barcelona, Europastry had previously paused its share offerings in the summer due to “market volatility.” The shares are currently priced within an indicative range of €15.85 to €18.75. The company intends to list on stock exchanges in Barcelona, Madrid, Bilbao, and Valencia.

With a reported turnover of €1.3 billion last year, Europastry plans to utilize the capital raised from the IPO for debt reduction and to seize “potential investments for inorganic growth opportunities,” which include mergers and acquisitions. This strategic approach aligns with current trends in the food and beverage industry, where companies are increasingly seeking to solidify their market presence through strategic partnerships and expansions.

Established in 1987 by Pere Gallés, Europastry is a family-owned entity that has actively pursued mergers and acquisitions, currently operating 27 production facilities that serve over 80 different markets.

In its IPO filing, Europastry disclosed its acquisition of DeWi Back Holding, a German frozen bakery products company, earlier this year in March. Recently, in August, it also acquired De Groot Edelgebak, a Dutch distributor specializing in frozen breads and pastries. Previous acquisitions include the frozen bakery segment of US-based Dawn Foods in 2022 and investments in Spanish pizza manufacturer Casa Bona in 2019, alongside acquiring full ownership of foodservice supplier Ingapan.

Europastry’s diverse product portfolio encompasses breads, pizzas, pies, pastries, and sandwiches, boasting a 20% growth in turnover in 2023. Notably, retail sales constituted 56% of last year’s revenue, with the out-of-home market contributing 32%, while business-to-business clients made up the remainder. As of June this year, the company’s turnover reached €714 million, with an adjusted EBITDA of €114 million. Europastry is targeting a revenue increase in the low to mid-teens for the entirety of 2023.

The IPO will feature both primary and secondary offerings of shares. The secondary offering includes shares owned by investment firms associated with the Gallés family, particularly Exponent, which operates under the MCH Continuation Fund in Madrid. Indinura, owned by Europastry’s CEO Jordi Morral, is also part of this secondary offering, ensuring the family maintains controlling interest post-IPO.

This strategic move comes as the food and drink consumer trends evolve, with businesses adapting to the changing demands of consumers. By positioning itself for growth, Europastry aims to leverage its established reputation and seek further opportunities in the competitive landscape of the food and beverage industry.

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