Unigrains Investment Provides Growth Capital to Sfoglia Torino

April 24, 2017

European agribusiness investor Unigrains has provided growth capital to Sfoglia Torino in support of that company’s strategic growth plan to consolidate the frozen puff pastry sector.

With the help of the undisclosed investment, Sfoglia Torino was able to acquire 100 percent of Idea Quick Srl, an Italian frozen puff pastry producer. This deal marks the latest transaction under Sfoglia Torino’s strategic expansion plan launched in February 2017 by company CEO Enzo Perrino, and follows closely after Sfoglia Torino’s acquisition of Righi Srl – a leading producer and distributor of frozen savory pies and puff pastry snacks.

Sfoglia Torino saw sales of approximately €11 million (US$12 million) last year, representing 10 percent growth compared to the year before. However, following the acquisitions of Righi and Idea Quick, the group will now see sales exceeding €30 million (US$32.6 million), giving it the momentum and heft to be able to capitalize upon opportunities for sustainable and profitable growth through expanding its presence both domestically and into international markets.

“Having tripled in size through the successive acquisitions of Righi and Idea Quick, Sfoglia Torino is now the major Italian player in puff pastry snacks,” said Enzo Perrino, CEO of Shoglia Torino. “Going forward, we will seek to generate synergies to further strengthen our teams, and accelerate growth. We look forward to working closely with Unigrains given their deep understanding of our activity.”

Unigrains

Celebrating its 50th year, Unigrains is a growth capital partner with more than €690 million (US$750 million) in equity capital for players, including SMEs, large companies, private groups, and cooperatives in the agri-food and agro-industrial sectors, according to the firm’s website.

Created and largely owned by associations of cereal producers, Unigrains makes annual investments totaling between €70 million (US$76 million) and €100 million (US$108.6 million) with the goal of creating value through the strong partnerships it forges.

“We are pleased to accompany Enzo Perrino, a highly capable entrepreneur, by bringing our financial and sector expertise in support of his project to consolidate and lead a promising market segment,” said Francesco Orazi, managing director of Unigrains in Italy. “Sfoglia Torino, Unigrains’ second investment in Italy, perfectly illustrates our approach and our ambition to be the partner of choice for Italian food and ag entrepreneurs in realizing their development projects.”

Bakery Products

Mordor Intelligence reports that rising consumption rates for bakery products are indicative of significant unrealized potential for growth and returns in the bakery and pastry products market. Driven by consumer shifts toward indulgent, convenient, and easy to eat baked goods and away from meat and packaged goods, the bakery products market is forecast to reach a value of US$447 billion this year, according to Global Industry Analysts, Inc., and reach a value of US$532 billion by 2022, according to Mordor Intelligence.

Within these parameters, pastries were the fastest growing category in the baked goods segment, according to Euromonitor, accounting for 80 percent of the category’s growth in volume between 2008 and 2013.

“After having analyzed the upcoming market evolutions and the industry specific dynamic, we envisaged a consolidation trend which Idea Quick should be part of,” said Francesco Schiavinato, executive director and shaoreholder, Idea Quick. “Once we met Unigrains and Sfoglia Torino, in accordance with the major Shareholder Alessandro Carniato, we recognized that this project represents the best combination for the future.”

Sfoglia Torino is well-situated in its pursuit of consolidation within the Western European puff pastry market, as globally, Europe represent the largest market in the baked goods segment, followed by Latin America and the U.S. However growth in Western Europe is expected to be driven by new flavors, while Eastern Europe is expected to be the leading growth market for biscuits.

 

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

Join the Global AgInvesting Community

Share your email to be notified about upcoming events, receive leading industry news and more.