Dutch food company Royal Wessanen has agreed to buy a manufacturer and distributor of organic brands in Spain for €67m.
Wessanen agreed with Nazca to buy Biogran, with the deal expected to close later on Monday.
The Amsterdam-listed company said Biogran has recorded “strong” growth in both health food stores as well as in grocery trade in Spain over the last few years. The El Granero brand has been extended into the grocery trade and the Ecocesta brand in organic and natural foods.
In 2015, the firm had revenue of €27m, while in 2016 sales are expected to grow to €32m with the earnings before interest, tax, depreciation and amortisation (EBITDA) margin anticipated to be close to 17%.
Wessanen’s chief executive Christophe Barnouin the acquisition of Biogran broadens the company’s geographic footprint, and is a further step in its aim of becoming the leader of organic and sustainable food in Europe.
He said: “We are very pleased to welcome Biogran to the Wessanen family of leading organic and sustainable food companies. Biogran gives us broad access to the growth potential in one of the most dynamic countries in the European organic market: the Spanish organic market has grown at double digit rates over the last few years.
“The acquisition of Biogran represents a major growth opportunity for Wessanen to develop our business in the country”.
Shares in Wessanen were up 1.83% to 11.42 cents at 1225 GMT.
By Maryam Cockar
Source: Digital Look
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