German food manufacturer Südzucker has announced that its US subsidiary Freiberger is set to acquire Richelieu Foods - one of the largest private label pizza producers in the United States.
The $435 million deal will see Freiberger take over the Massachusetts-based company, which produces frozen and deli pizzas, as well as sauces and dressings, for food retailers across the US.
Richelieu Foods generated sales of $325 million in 2016.
Strategic Acquisition
Ernesto Bisagno, senior credit officer at Moody's ratings agency, discussed the credit implications of this deal, which is expected to close by the end of the year.
“We view the acquisition as a good strategic fit for Südzucker given its existing exposure to the frozen pizzas market in Europe, where the company is the sector leader through Freiberger, with approximately 18% market share."
"In addition, the acquisition will help Südzucker to reduce the exposure to the volatility in sugar prices," he added.
Last month, Südzucker posted sales of €3,493 million in the first half of its financial year, representing an increase of 9%, with growth largely driven by its sugar business.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
