Angelo Mastrolia, president of Newlat
The agreement will allow Newlat Food to enter the growing segment of bakery and dessert mixes as a protagonist
Newlat Food, an Italian agri-food company based in Reggio Emilia, has acquired 100% of EM Foods SAS, a leading French manufacturer of baked and dessert mixes. In compliance with French law, Newlat Food today subscribed a put option relating to 100% of the ordinary shares and voting rights of EM Foods. Before closing can take place, it will be necessary to complete the information and consultation process of the works council at EM Foods level. The closing of the transaction is expected by the end of the year.
The acquisition of the industrial know-how from EM Foods and the important partnership with a multinational will allow a Newlat Food to enter, as a protagonist, the growing segment of bakery and dessert mixes. The company will produce a very wide range of products including brownies, puddings, muffins, baking powder and cake mixes, leveraging the strong awareness of the “Minuto” brand, already used by the Newlat Group in Germany to sell well-known ready meals and high quality.
The segment of baking and dessert mixes it is a particularly interesting area of the food industry, as it reflects current trends and new life habits. The Newlat group is strongly committed to the strategic development of the “minute” brand in the most important Western European markets and in particular in France, Germany and Italy, having plans to launch new recipes and formulations for tasty but also healthy, fast and easy-to-use products prepare.
The acquisition will also allow the company to develop further synergies with the existing division of Symington’s (undisputed leader in the segment of bakery and dessert mixes in the UK, with 75% market share in the private label sector). Symington’s it will represent a solid distribution platform for the “Minuto” brand in the UK as well.
With a total investment of 20 million euros, the company expects EM Foods to generate revenues of € 50 million in 2024, resulting from a combination of LTSA and the new business that will result from the development of the Newlat Food proprietary brands. L‘Ebitda is expected to be 5 million euros in the same year. At the time of closing EM Foods it will present a neutral net financial position. The investment will be financed by the Company through existing cash on hand.
EM Foods is a company founded in 2021 to include all the activities of the Alsa manufacturing plant based in Ludres, France, which has been the main Alsa plant since 1972. Alsa is a longtime manufacturer of baked goods and cake mixes founded in 1897 and acquired by Dr. Oetker in 2018.
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