Food products Emmi wants to take over French company Mademoiselle Desserts

Emmi is sweetening its dessert business with an acquisition in France. The milk processor wants to take over the Mademoiselle Desserts Group, which specializes in premium patisserie.

The deal is to be financed through debt capital and surplus cash, according to a press release issued on Friday. Emmi has entered into a put option agreement for the planned purchase.

Mademoiselle Desserts employs 2,000 people and generated annual sales of around 420 million euros in 2023. Both sales growth and operating margins are above average compared to Emmi.

The enterprise value of the takeover amounts to around EUR 900 million, and the strategic niche of premium desserts will account for around 17 percent of Emmi's total sales after the acquisition. The dessert business currently accounts for only 9 percent of sales. There will be integration costs in the short term, but the company expects growth synergies in the medium term.

Timing still unclear

The impact on the current financial year cannot yet be estimated, the statement continued. This is because the takeover is still subject to consultations with the respective employee representatives of Mademoiselle Desserts and approval by the relevant competition and supervisory authorities.

The impact on the year as a whole depends heavily on the timing of the takeover. According to a presentation, Emmi currently expects the transaction to be completed in the fourth quarter of the current year. Emmi is currently maintaining its 2024 targets for the existing business as well as its medium-term financial targets and dividend policy.

New management for dessert business

The takeover will also result in personnel changes. The current head of Mademoiselle Desserts, Didier Boudy, will take over responsibility for Emmi's newly created "Desserts Powerhouse". In this business unit, Mademoiselle Desserts will be combined with the existing Emmi dessert companies in Italy and the USA. This should also ensure optimal integration.

The Mademoiselle Desserts Group has a leading market position in the European dessert market, with twelve of its own production sites in France, England, the Netherlands and Belgium, the statement continued. The patisserie products are available both in the traditional retail trade, where they will complement Emmi's existing dessert portfolio, particularly in bakeries, and in the food service sector.

SDA