SPAIN – Europastry, the Spanish frozen bakery company, has resumed its initial public offering (IPO) process, aiming to raise €555 million (approximately $618.3 million).
This move comes after a temporary halt in the summer due to market fluctuations. The Comisión Nacional del Mercado de Valores (CNMV), Spain’s securities market regulator, approved the IPO, and the book-building process commenced on September 27, 2024.
The company targets a stock market listing on October 10, 2024.
Headquartered in Barcelona and founded in 1987 by Pere Gallés, Europastry has become a significant player in the frozen bakery sector.
With a reported turnover of €1.3 billion (US$1.4 Billion) last year, the company plans to utilize the funds from the IPO primarily to reduce its debt and pursue mergers and acquisitions.
“We aim to capture potential investments for inorganic growth opportunities,” a spokesperson for Europastry said, highlighting the company’s strategic focus on expanding through acquisitions.
The share pricing is set within an indicative range of €15.85 to €18.75 (US$17.68 to US$20.92), and the listing will occur across multiple Spanish stock exchanges including Barcelona, Madrid, Bilbao, and Valencia.
This IPO consists of both primary and secondary offerings. The secondary tranche includes shares owned by investment firms linked to the Gallés family, specifically Exponent and Indinura, owned by Europastry’s CEO Jordi Morral.
Despite this offering, the Gallés family will retain control over the company post-IPO.
Europastry has a history of pursuing growth through acquisitions. Recently, it announced the acquisition of DeWi Back Holding in March 2024, a German frozen bakery business.
In August, it also acquired De Groot Edelgebak, a Dutch distributor of frozen breads and pastries.
Previous deals include purchasing Dawn Foods’ frozen bakery business in 2022 and investments in Casa Bona, a Spanish pizza business, in 2019.
“Our strategy has always included identifying key opportunities in the market,” said Morral.
In addition to its expansion plans through acquisitions, Europastry has demonstrated robust financial performance.
The company reported a turnover of €714 million (US$796.5 million) for the first half of 2024 alone) and adjusted EBITDA of €114 million (US$127.2 million).
It anticipates continued growth with a target turnover increase in the low-to-mid teens for the entire year.
Retail sales accounted for 56% of last year’s turnover, while out-of-home channels contributed 32%, with B2B customers making up the remainder.
Europastry faces challenges and opportunities within the competitive food industry landscape as it prepares for its IPO.
The ongoing demand for frozen bakery products presents a favourable environment for growth.
However, market volatility remains a concern that could impact investor sentiment during this critical phase.
With an established portfolio that includes bread, pizza, pies, pastries, and sandwiches under brands like Dots and Panburger, Europastry can leverage its upcoming public offering as a catalyst for further expansion.
The company’s commitment to reducing debt while actively pursuing strategic acquisitions reflects its ambition to enhance its market presence in Europe and beyond.
As Simon Harvey reports on September 27th, “Europastry’s IPO marks a significant step forward in its growth strategy,” indicating a pivotal moment for the company and investors looking to tap into the burgeoning frozen food sector.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the WorldHERE.
