Wessanen Buys Spanish Organic Food Manufacturer Biogran for $72 Million
07 Dec 2016 --- Wessanen, the Dutch food group, has acquired Spanish rice cake and cereal maker Biogran for €67m ($72m), heralding the potential for the Spanish organic market to outgrow other European countries. The deal forms part of Wessanen’s plans to become a dominant player in the European “sustainable” foods market.
Biogran owns El Granero, a leading organic brand in Spain and has a presence in natural foods such as cereals and rice cakes.
Christophe Barnouin, Wassanen CEO said: "The acquisition of Biogran broadens our geographic footprint and is a further step in the execution of our strategy and vision of becoming the leader of organic and sustainable food in Europe.”
“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."
Biogran was sold to Wessanen by private equity form Nazca Capital.
Biogran is a growing company across Health Food Stores as well as grocery and its revenues are expected to increase by more than €5m ($5.4m) year-on-year to over €32m ($34m) this year.
Aside from El Garnero, its other key brands include organic grocery brand Ecocesta and Taho Cereal.
These brands will sit alongside Wessanen’s organic brands such as Bjorg, Allos and Bonneterre.
While Spain currently has just one percent of the European market share for organic food, it is the biggest producer of organic food in Europe and Wessanen believes there is a big untapped potential.
In October, Wessanen reported that sales were up over nine percent to €137.5 million ($126m) in the third quarter, aided by strong demand for Bjorg and Bonneterre in France.
Profits were down slightly from €6.1m ($5.6m) to €6m ($5.5m) in Q3, after the Netherlands-based organic food company was hurt by a sharper decline in its private label business in the quarter.
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