The owners of Portuguese agri-food company Cerealis and French pasta producer Panzani are discussing a potential combination of their businesses.
In a joint statement issued today (16 October), the companies said their shareholders had begun discussions “to combine Panzani and Cerealis, with the aim of creating an independent, diversified European food group”.
Cerealis is owned by the Moreira Da Silva and Silva Domingues families alongside Belgian investment company Sofina. Panzani is controlled by private-equity investor CVC Capital Partners.
As part of the proposed transaction, CVC, which acquired Panzani in 2022, would retain “a minority stake in the combined business”, which has an estimated value of approximately €1.8bn ($2bn), according to the statement.
The combined group would generate about €1bn in annual sales and employ nearly 1,800 people. The companies described the proposed entity as “a major European food business with a strong foundation for growth”.
Headquartered in Lyon, east-central France, Panzani has “an established presence” in France, the Netherlands and central Europe. Its portfolio includes pasta, couscous and sauces, and the company recorded €620m in revenue last year.
Cerealis reported revenue of €400m for the same period. The business operates across Portugal, Spain, Czechia and Poland, supplying products such as pasta, breakfast cereals and biscuits. The Moreira Da Silva and Silva Domingues families acquired the company in 2021.
“The main driver of this transaction is the opportunity to build on highly complementary product ranges, technologies and expertise,” said Pedro Moreira da Silva, the executive vice-chairman of Cerealis.
“Panzani and Cerealis share the same entrepreneurial culture, a long-term commitment to their brands and markets, and a common ambition for growth. It will strengthen our capacity for innovation and create new growth opportunities for both companies.”
The companies said in their joint announcement that combining the two businesses would create “new opportunities for growth by drawing on the companies’ respective strengths”.
They added that their “complementary product portfolios” would allow Panzani and Cerealis “to develop their offering beyond their existing categories, while their geographical presence would provide opportunities to introduce established brands into additional European markets”.
The proposed structure would preserve “a decentralised operating model, preserving the operational and industrial autonomy of both businesses”.
Cerealis executive vice-chairman Pedro Moreira da Silva “would provide overall leadership” of the combined group, “leading initiatives spanning both businesses”.
Panzani CEO Albert Mathieu would remain in charge of the French business while also directing the combined company’s activities in central Europe.
Paula Meireles would likewise continue as Cerealis CEO and would take responsibility for the new group’s Iberian and international private-label operations.
Mathieu said: “By joining forces with Cerealis, we would build an independent pan-European player that is more diversified, stronger and more resilient, while preserving what defines our identity: our French roots, our operations, our brands and our commitment to our agricultural durum wheat partners. It is a growth project for both our teams and our partners.”
Completion of the transaction remains dependent on the required regulatory clearances and “consultation of the relevant employee representative bodies”.
