- Acquisition of a strong player in the butter cookies market
- Aligned with a comforting expansion strategy of Biscuit International in Europe
- Opportunity for Portuguese market leader Dan Cake Portugal to reinforce its solid flagship operation and expand its international position in the segment
Paris, 3rd February 2021 – Biscuit International, one of Europe’s leading players in the private label tasty and healthy biscuits market, and the owners of Dan Cake Portugal, a leading producer and distributor of biscuits and cakes in Portugal and a leader in the butter cookies market, announce today that they have agreed on the heads of terms of an envisaged acquisition of Dan Cake Portugal by Biscuit International. Closing of the transaction is subject to applicable antitrust procedures.
Founded in 1978, Dan Cake Portugal is a family-owned Portuguese company headquartered in the region of Coimbra. The company is a respected flagship leader in the butter cookies segment in Portugal, manufacturing several other products for the local and international markets. Dan Cake Portugal runs a sustainable, committed and successful operation with an annual turnover of more than 55 million euros.
The contemplated acquisition of Dan Cake Portugal will be a further milestone in Biscuit International’s growth strategy, which includes organic and external expansion of its product portfolio and geographic footprint. This transaction would follow a series of acquisitions: Aviateur in the Netherlands in November 2019, Arluy in Spain in July 2018, Stroopwafel en Co. in the Netherlands in June 2018, NFF in the UK in May 2018 and A&W in Germany in December 2017.
Subject to antitrust approval, the proposed transaction will be beneficial for both Dan Cake Portugal and Biscuit International, as it will capitalize on the complementary product portfolios and skill sets of the two companies. Both companies will further increase their geographic presence in Europe and globally. In addition, Dan Cake Portugal and Biscuit International will benefit from enhanced commercial, product development and supply chain resources, allowing the combined group to better serve the growing and increasingly complex needs of their clients.
In summary, the acquisition of Dan Cake Portugal will further reinforce Biscuit International’s position as a major player in the European private label tasty and healthy biscuit market.
The Dan Cake Portugal management team, led by its CEO Mitesh Kantilal Jamnadas and CFO Virgílio Gonçalves Vitorino Alves, will continue to manage the company and assist Biscuit International with the successful integration of the two leading and sustainable businesses following the completion of the transaction.
Giampaolo Schiratti, Biscuit International CEO, declared: “The proposed acquisition of Dan Cake Portugal is a win-win situation for both companies. Dan Cake Portugal is a very well-established company and a strong player in the butter cookies market. It would be an excellent addition to Biscuit International Group, both in terms of product portfolios and geographical coverage. It marks an important milestone in our pursuit to enhance the breadth of our high-quality product portfolio for the benefit of our customers and their consumers. We look forward to investing further in the business and helping Dan Cake Portugal to implement the considerable growth potential our international markets are offering.”
Kantilal Jamnadas, the majority-owner of Dan Cake Portugal added: “The acquisition by Biscuit International is an exciting development for Dan Cake Portugal, a clear and established leader in the market. In Biscuit International, we have found a sound and experienced partner, allowing Dan Cake Portugal to reinforce its local lead and expand its international position. Biscuit International’s management team have a solid track-record of acquiring and successfully integrating family-owned businesses such as Dan Cake Portugal, taking them to the next growth step. I am therefore convinced that this transaction will allow Dan Cake Portugal to enter a positive phase of its development for the benefit of our organization and our teams, our products, our clients and our customers.”
In this transaction, Biscuit International is advised by Alvarez and Marshal (financial advisor) and CS Associados (legal advisors). The Dan Cake Portugal shareholders are advised by BDO Portugal (financial advisor) and CCA (legal advisor).
About Biscuit International:
Since its creation, Biscuit International has been actively pursuing a pan-European consolidation strategy of the private label sweet biscuit market. Following the merger between Groupe Poult and Banketgroep in 2016 and the recent acquisitions of A&W Feinbackwahren in Germany, Northumbrian Fine Foods in the UK, Stroopwafel & Co in the Netherlands, Arluy in Spain and Aviateur in the Netherlands, Biscuit International became one of Europe’s leading private label biscuit players. After the completion of the transaction, the enlarged Group will produce around 200.000 tons of biscuits and waffles from 20 factories in Europe. Biscuit International generated pro forma sales in excess of €530m during the last 12 months, of which approximately two-thirds outside of France, based on its large product offering to its retail and industrial customers, and employs approximately 2,500 people.
About Platinum Equity:
Biscuit lnternational's shareholder is Platinum Equity (“Platinum”). Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $23 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations - a trademarked strategy it calls M&A&O® - acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.
About Dan Cake Portugal:
Based in Coimbra, Portugal, Dan Cake Portugal was founded in 1978 by the Jamnadas family. Dan Cake Portugal is a respected and sustainable family-owned business, leading manufacturer in high-quality biscuits and cakes, notably a leader and much-loved domestic brand in butter cookies. Dan Cake Portugal runs a significant local operation of 500 employees in 2 factories, in Lisbon and Coimbra. Dan Cake Portugal generated global sales in excess of €55m in the past year, with most products sold under private label and for co-manufacturing customers, in addition to “Danesita” and “Dan Cake” brands. Family businesses in Portugal represent the backbone of the national economy, with Dan Cake Portugal exporting over 80% of existing production, with 20% of sales in Portugal, emerging as a clear leader in the domestic market.
For Biscuit International: Brunswick Group
Agnès Catineau / Laura de Carné
Phone : +33 (0) 1 53 96 83 83
For Dan Cake Portugal: Brunswick Group
Alexandra Abreu Loureiro /Afonso Oliveira
Phone : +44 (0) 20 7404 5959