Sonae takes another step towards internationalization in the sustainable and healthy food business. The company announced this Monday that its subsidiary Sparkfood presented “an irrevocable offer and is in exclusive negotiations with the aim of acquiring a stake of approximately 89% in Diorren, the company that owns BCF Life Sciences (BCF), for a sum total of 152 million euros, on a free cash and debt basis”.
Em statement sent to the Securities Market Commission (CMVM), Sonae, owner of PÚBLICO, states that “BCF produces ingredients for the nutrition industry through an innovative production process supported by the principles of the circular economy”, transforming “waste from food production in ingredients with high added value (amino acids), which are incorporated into pharmaceutical products, human and animal food, as well as solutions for sustainable agriculture”.
“The execution of this agreement is subject to the satisfaction of the usual conditions for a transaction of this nature, including legal and regulatory conditions”, reads the statement, where Sonae says it expects the transaction to be completed in the first half of 2024.
The company led by Cláudia Azevedo states that “BCF’s production processes are protected by several patents and commercial secrets developed internally over the years and perfected by the current management team”, which, after the transaction is completed, will remain managing the company, being able to have a minority stake of around 11%, in aggregate terms.
Founded in 1986 and headquartered in Brittany, BCF ended 2023 with a turnover of around 53.5 million euros (compound annual growth rate or CAGR, in its acronym in English, of +11%, from 2020 to 2023) , and an EBITDA (earnings before interest, taxes, depreciation and amortization) of around 14.1 million euros (CAGR of +16% from 2020 to 2023), says Sonae.
New growing businesses
The Portuguese group also states that “the transaction is fully aligned with Sonae’s strategy to create, at Sparkfood, a global platform in the food industry food tech, through the acquisition of companies specialized in innovative ingredients, with strong knowledge, proven experience and relevant positions in the market”. And yet “this transaction is also part of Sonae’s commitment to a more sustainable future, as it represents an important investment in the circular economy, and contributes to the group’s international expansion”.
Sparkfood, announced in November as another branch of the group’s business, has already acquired five companies and startupsin an investment of 110 million euros.
Currently, Sonae has another acquisition underway, Musti, a Nordic pet products retailer, for which it launched a public takeover bid (OPA).