PALENCIA, Spain – Spanish food manufacturer Cerealto has reached an agreement to sell its pasta business, including the production facility in Venta de Baños, Palencia, to Portuguese company Cerealis. The move signals a strategic shift for Cerealto, allowing it to focus on its core snack and breakfast product lines, while providing a specialized home for its pasta operations. The deal, announced February 13, 2026, is subject to approval from the Spanish National Commission on Markets and Competition (CNMC) and the Portuguese Competition Authority (AdC).
The sale encompasses the entire pasta business, which primarily supplies the Spanish supermarket chain Mercadona with dry pasta under the Hacendado brand. According to Cerealto, the transaction will ensure the continuity of operations at the Venta de Baños plant and maintain existing employment levels. This reassurance comes as welcome news for the approximately 2800 people employed by Cerealto across its various production centers in Spain, Portugal, Italy, the United Kingdom, and Mexico, as reported by Wikipedia.
Strategic Realignment for Cerealto
Cerealto, formerly known as Siro, has been undergoing a period of strategic refocusing. The company stated that the decision to divest its pasta business is part of a broader plan to concentrate resources on areas where it sees the greatest potential for future growth – specifically, snacks and breakfast cereals. This follows a 2018 merger between Grupo Siro and its international subsidiary, Cerealto, creating the multinational food company. The pasta business, while described as “rentable” and having received “continuous investments” in recent years, represents around 20% of Cerealto’s total revenue, equating to approximately 100 million euros in 2024, according to company figures.
The remaining 80% of Cerealto’s 525.7 million euro revenue in 2024 comes from the sale of biscuits, breakfast cereals, and snacks. A significant 53% of the company’s total sales are made to Mercadona, highlighting the importance of this relationship. By streamlining its portfolio, Cerealto aims to strengthen its position in these key markets.
Cerealis: A Specialized Partner
Cerealis, the acquiring company, is a Portuguese firm specializing in pasta production. Cerealto believes that transferring the pasta business to a company with dedicated expertise in this sector will unlock further growth opportunities. “The operation guarantees the continuity of the activity in the plant of Venta de Baños, as well as the maintenance of employment and working conditions,” Cerealto stated in a press release. No financial details of the transaction have been disclosed.
Impact on Mercadona and the Local Economy
The deal has particular significance for Mercadona, which relies on Cerealto for a substantial portion of its Hacendado pasta supply. The transition to Cerealis as the supplier is expected to be seamless, with no anticipated disruptions to the availability of the popular product. The preservation of jobs at the Venta de Baños facility is similarly a positive outcome for the local economy in Palencia, northern Spain. El Norte de Castilla reported that the plant is a key employer in the region.
A Growing Trend in the Food Industry
This sale reflects a broader trend within the food industry, where companies are increasingly focusing on core competencies and divesting non-strategic assets. This allows them to invest more effectively in areas where they have a competitive advantage and to respond more quickly to changing consumer demands. The move by Cerealto to concentrate on snacks and breakfast cereals aligns with growing consumer preferences for convenience foods and healthier options.
Looking Ahead
The completion of the sale is contingent upon regulatory approval from both Spanish and Portuguese authorities. Once approved, Cerealis will grab ownership of the pasta business and the Venta de Baños production facility. Cerealto will then fully dedicate its resources to expanding its presence in the snack and breakfast markets. The CNMC and AdC are expected to announce their decisions in the coming months. Further updates on the transaction will be available on the Cerealto website: www.cerealto.com.
This strategic move by Cerealto underscores the dynamic nature of the food industry and the importance of adapting to evolving market conditions. The sale of its pasta business allows the company to sharpen its focus and pursue growth opportunities in its core areas of expertise.
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