Barry Callebaut has reached an agreement with Petra Foods of Singapore to acquire Petra’s Cocoa Ingredients Division for $US950 million. Petra Foods’ Cocoa Ingredients Division is said to be the largest cocoa products supplier in Asia with a global sales volume of 265,000 MT and 47,000 MT of co-manufacturing volumes for large accounts, sales revenue of USD 1.3 billion (CHF 1.1 billion) and 1,700 employees in fiscal year 2011 (ended December 31, 2011). The business has a significant global footprint across four continents with 405,000 MT of bean-grinding capacity in seven processing facilities, and four sales offices. The integration of Petra Foods’ Cocoa Ingredients Division will make, said Barry Callebaut, make it the largest global cocoa processor.
The transaction also includes a long-term agreement with Petra Foods’ branded consumer division to supply it with cocoa products covering 75% of its total needs. The transaction is subject to approval by Petra Foods’ shareholders as well as regulatory authorities. The closing of the transaction is expected in summer 2013.
“This acquisition is an excellent strategic fit that will support our future global growth,” said Andreas Jacobs, chairman of Barry Callebaut. “The integration of Petra Foods’ Cocoa Ingredients Division into our Group is expected to strengthen Barry Callebaut’s earnings per share. This significant transaction will allow us to continue our expansion strategy in all regions and capture additional opportunities through outsourcing and partnership agreements as well as in Gourmet.”
“The acquisition marks a major step forward in the implementation of our four-pillar growth strategy,” said Juergen Steinemann, Barry Callebaut’s CEO. “A stronger integrated position in sustainable cocoa sourcing and processing is important to keep growing our chocolate business over-proportionally, especially in emerging markets.
The deal also allows us to become a strategic supplier of specialty cocoa powders and meet the growing integrated value chain requirements of our customers and partners. Moreover, Barry Callebaut will gain valuable know-how and become even more global thanks to all the new colleagues whom we will welcome with open arms upon closing the planned transaction.”
The acquisition is in line with Barry Callebaut’s strategy for future growth based on expansion, innovation, cost leadership andsustainable cocoa.
The company said that the acquisition will strengthen Barry Callebaut's cocoa position, which is crucial for supporting the company’s industrial chocolate growth and expanding its offering to industrial chocolate, outsourcing and gourmet customers. In addition, the acquisition will boost Barry Callebaut’s sales volume in the fast growing emerging markets of Asia and Latin America by 65%.
The company’s share of reported sales volume will therefore grow to 31% from 24%. The markets for cocoa powder are growing fast (by 2-5% per annum), mostly driven by emerging markets and increasing demand for a broad range of applications, such as cocoa-based beverages, compounds, fillings, bakery products and ice cream.
The transaction will also significantly expand Barry Callebaut’s cocoa processing and cake and powder blending expertise and give it valuable market and management know-how in Asia.
According to the company, the acquisition will strengthen Barry Callebaut’s cost leadership in cocoa processing by enlarging its footprint in cost-competitive production countries, partially replacing future investments in production capacities, and enabling product flow optimisations.
Barry Callebaut also said that it will be able to strengthen and further diversify its cocoa sourcing and processing activities in origin countries by creating a second strong sourcing base in Asia, besides West Africa.
