EMMI AG
Emmi Management AG / Key word(s): Acquisition Ad hoc announcement pursuant to Art. 53 LR Lucerne, 5 July 2024 – The Emmi Group has entered into a put option agreement for the contemplated acquisition of the leading French Mademoiselle Desserts Group, which specialises in innovative premium patisserie. This transaction would enable the Emmi Group to continue to expand its market presence in the premium desserts category as part of its proven strategy and focused internationalisation. This contemplated transaction would complement Emmi’s dessert portfolio to include French inspired desserts from a company with a leading presence in the in-store-bakery and food service area. In doing so, Emmi would be able to offer its customers an innovative full range that unites the great dessert traditions. The Emmi Group would take on a leading role in the premium dessert category that is growing on a global scale, to extending its dessert expertise that it has consistently built up over more than ten years. Mademoiselle Desserts generated annual sales of around EUR 420 million in 2023 with a workforce of approximately 2,000 employees. The completion of the transaction remains subject to the consultation of the relevant employee representative bodies of Mademoiselle Desserts and the approval by the relevant competition authorities and regulatory authorities. The Emmi Group has pursued a focused and disciplined internationalisation strategy for many years, with acquisitions always having played an important role in strengthening the respective market position and accelerating organic growth. Emmi has conducted 45 acquisitions in the last 30 years. It has integrated these successfully and continues to develop its portfolio also beyond Switzerland. The strategy is focused on four selected niches in which Emmi has great expertise and a relevant market position, and where it can promote profitable growth. Premium desserts is one of these important strategic niches.
As part of the continuous portfolio transformation and focus on profitable growth, Emmi has built up significant dessert expertise in the last ten years. It started in 2011 in Italy with Italian inspired desserts, such as tiramisu, and last culminated with a fifth dessert acquisition in 2020 in the US adding also American and Latin inspired desserts, which served as a springboard for the dessert business in the US. The premium dessert business today accounts for nine percent of the Emmi Group’s total sales. With this contemplated acquisition of the Mademoiselle Desserts Group, Emmi would add French inspired desserts and strengthen Anglo-Saxon inspired cakes and desserts to its portfolio which enables it to offer its customers an innovative full range that combines the great dessert traditions. This contemplated acquisition will open up new market opportunities for Emmi to play a leading global role as a "Desserts Powerhouse" in the growing premium dessert category.
The Mademoiselle Desserts Group has a leading market position in the European dessert market with twelve own production facilities in France, the UK, the Netherlands and Belgium. The company is characterised by a high-quality patisserie portfolio, its great innovative strength and strong partnerships with customers. Mademoiselle Desserts constantly develops its product portfolio together with its customers, most recently adding also snacking products to the portfolio. The products are available in the traditional retail channels, complementing the existing portfolio of Emmi, especially in the in-store-bakery sector, as well as in food service.
Didier Boudy, the current CEO of the Mademoiselle Desserts Group, would assume responsibility for the new Emmi "Desserts Powerhouse", which would bring together the Mademoiselle Desserts Group with existing Emmi Dessert companies from Italy and the US, to advance the strategic development of the dessert business. This would also ensure continuity in management and guarantee optimal integration. Didier Boudy is widely regarded as an industry expert and has been the president of the Federation of Bakery-Pastry Enterprises (Fédération des Entreprises de Boulangerie/Patisserie, FEB) since 2021.
Emmi would acquire the Mademoiselle Desserts Group for an enterprise value of around EUR 900 million. This would correspond to an implied EBITDA multiple, which is lower than the current multiple for the Emmi Group. With approximately 2,000 employees, the Mademoiselle Desserts Group generated annual sales of around EUR 420 million in 2023. Both sales growth and operating margins are above average compared to the Emmi Group. There is also medium-term potential for growth synergies. After this contemplated acquisition, the strategic premium desserts niche would account for around 17 percent of total sales. The Emmi Group intends to finance the contemplated acquisition mainly through new debt as well as surplus liquid funds.
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Contacts Media Investors and Analysts About Emmi Emmi is the leading manufacturer of high-quality dairy products in Switzerland. Its roots date back to 1907, when it was founded by dairy farmer cooperatives in the Lucerne region. With its focussed strategy, innovative products and brand concepts established beyond Switzerland, such as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an internationally active, listed group (EMMN) with a strong local presence in 14 countries. Emmi’s business model is traditionally based on a careful approach to nature, animals and people. In this way, Emmi creates the best dairy moments, today and for generations to come, while also contributing to value creation in rural regions. The company distributes its quality products in around 60 countries and manufactures these at 57 of its own production sites in eleven countries. With more than 9,000 employees, around 70% of whom work outside Switzerland, the Emmi Group generated sales of CHF 4.2 billion in 2023. About Mademoiselle Desserts Emmi is the. Mademoiselle Desserts is Europe’s leading manufacturer of innovative premium patisserie and supplies a wide range of products, such as sweet pastries, cakes, gateaux, millefeuilles, beignets and much more to the retail and food service across the world. The Mademoiselle Desserts Group is headquartered in Montigny-le-Bretonneux in France and has 12 production sites in France, the UK, the Netherlands and Belgium. The company is defined by quality, innovative strength and strategic partnerships with its customers. The Mademoiselle Desserts Group is B Corp certified since 2022. The internationally established ESG certification is part of the Group’s CSR strategy. Mademoiselle Desserts supplies a wide array of customers from cafés, restaurants, the retail industry and delivery services in France, the UK, the Netherlands and Belgium and in around 50 countries worldwide. Mademoiselle Desserts Group generated sales of around Euro 420 million in 2023 with a workforce of approximately 2,000 employees. End of Inside Information |
| Language: | English |
| Company: | Emmi Management AG |
| Landenbergstrasse 1 | |
| 6005 Luzern | |
| Switzerland | |
| E-mail: | info@emmi.com |
| Internet: | www.emmi.com |
| ISIN: | CH0012829898 |
| Valor: | 1282989 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1940105 |
| End of Announcement | EQS News Service |
1940105 05-Jul-2024 CET/CEST
