Barry Callebaut has inked an agreement with Petra Foods Ltd., Singapore, to acquire their Cocoa Ingredients Division, the largest cocoa products supplier in Asia.
With sales revenue of $1.3 billion, 405,000 metric tons of bean-grinding capacity in seven processing facilities and four sales offices, Petra Foods’ Cocoa Ingredients Division has a significant global footprint across four continents. This acquisition will make Barry Callebaut the largest global cocoa processor.
The transaction also includes a long-term agreement with Petra Foods’ branded consumer division to supply it with cocoa products covering 75 percent of its total needs. It is expected to close in summer 2013, pending approval by Petra Foods’ shareholders as well as regulatory authorities. All told, the acquisition will cost $950 million cash, to be financed by a bridge loan from banks that will be replaced within 12 months by the issuance of a combination of equity and debt.
“The acquisition marks a major step forward in the implementation of our four-pillar growth strategy,” Barry Callebaut CEO Juergen Steinemann said in a statement. “A stronger integrated position in sustainable cocoa sourcing and processing is important to keep growing our chocolate business over proportionally, especially in emerging markets. The deal also allows us to become a strategic supplier of specialty cocoa powders and meet the growing integrated value chain requirements of our customers and partners.”