Biscuit International’s next step in expansion strategy snaps up Portuguese butter cookie producer

03-Feb-2021 - Last updated on 03-Feb-2021 at 13:54 GMT

Dan Cake Portugal is a category leader in Portugal's biscuit market. Pic: Dan Cake Portugal

Biscuit International, one of Europe’s leading players in the private label healthy biscuit category, has agreed to acquire Dan Cake Portugal, subject to antitrust procedures.

Founded in 1978, Dan Cake Portugal is a family-owned company and a respected flagship leader in the butter cookies segment in the country.

It runs a sustainable, committed and successful operation with an annual turnover of more than €55m, producing butter cookies for the local market, along with biscuits and cakes for export, sold under private label and for co-manufacturing customers, in addition to the Danesita and Dan Cake brands. Family businesses in Portugal represent the backbone of the national economy and with 20% of sales generated at home, it’s a clear leader in the domestic market.

European leader of private label sweet biscuits

The acquisition marks a further milestone in Biscuit International’s growth strategy, which in the past four years has included Aviateur in the Netherlands, Arluy in Spain, Stroopwafel en Co. in the Netherlands, NFF in the UK and A&W in Germany.

Since its creation in 2016 following the merger between Groupe Poult and Benketfroep, Biscuit International has been actively pursuing a pan-European consolidation strategy of becoming a leader of the private label tasty and healthy biscuit market. The Paris-headquartered conglomerate - which was acquired by Los Angeles-based Platinum Equity in 2019 - produces 200,000 tons of biscuits and waffles in 20 factories across Europe, generating pro forma sales in excess of €530m in the past 12 months.

The transaction will also be beneficial for Dan Cake Portugal in increasing its geographic footprint around the world. In addition, the Coimbra-based producer will gain from Biscuit International’s extensive commercial, product development and supply chain resources.

“The proposed acquisition of Dan Cake Portugal is a win-win situation for both companies,” said Giampaolo Schiratti, CEO of Biscuit International.

“Dan Cake Portugal is a very well-established company and a strong player in the butter cookies market. It will be an excellent addition to Biscuit International Group, both in terms of product portfolios and geographical coverage. It will mark an important milestone in our pursuit to enhance the breadth of our high-quality product portfolio for the benefit of our customers and their consumers.”

Next growth step

Kantilal Jamnadas, the majority-owner of Dan Cake Portugal, added, “We have found a sound and experienced partner that will be allowing Dan Cake Portugal to reinforce its local lead and expand its international position.

“Biscuit International’s management team have a solid track-record of acquiring and successfully integrating family-owned businesses such as Dan Cake Portugal, taking them to the next growth step.”

Financial details of the transaction were not disclosed. Biscuit International was advised by Alvarez and Marshal (financial) and CS Associados (legal), while the Dan Cake Portugal shareholders are advised by BDO Portugal (financial) and CCA (legal).