Panzani and Cerealis enter talks to create €1B European food group

French pasta producer Panzani and Portugal’s Cerealis have entered exclusive negotiations to combine their businesses, with plans to create a European food group generating approximately €1 billion (US$1.13 billion) in annual revenue. The companies aim to expand across markets and categories through investment in manufacturing, brands, and innovation.

The combined business would have an enterprise value of around €1.8 billion (US$2.03 billion) and nearly 1,800 employees. Panzani generated €620 million (US$697.7 million) in sales in 2025, while Cerealis reported €400 million (US$450.1 million).

Panzani’s pasta, couscous, and sauces portfolio would sit alongside Cerealis’ pasta, breakfast cereals, cereal bars, biscuits, and flour.

“It will strengthen our capacity for innovation and create new growth opportunities for both companies,” says Pedro Moreira da Silva, executive vice-chairman of Cerealis, who would lead the combined group.

Both companies would retain operational autonomy and their respective headquarters in Lyon, France, and Porto, Portugal. CVC Capital Partners would retain a minority stake alongside Cerealis’ existing shareholders.

The proposed transaction remains subject to employee consultation and regulatory approvals.

Building pasta scale

The talks follow Cerealis’ earlier move to expand its pasta operations in Spain. In February, Food Ingredients First reported that Cerealto had agreed to sell its pasta business and Venta de Baños production site to Cerealis.

The division generated more than €100 million (US$112.5 million) in annual revenue, and the agreement included the transfer of around 125 employees. Cerealto said the business would benefit from a specialist pasta operator as it redirected its own investment toward snacks and breakfast products.

Wheat sourcing and quality

Separately, pasta manufacturers are exploring how to manage wheat variability while maintaining texture and cooking performance.

In August, we examined Novonesis’ approach to more flexible wheat sourcing. Its Optiva Triticum biosolution strengthens the pasta protein network, helping manufacturers use soft wheat flour while improving firmness and limiting starch loss during cooking, according to the company.

That work highlights the parallel sourcing and formulation challenges facing the sector as manufacturers seek consistent quality and affordable products.