ValuStrat advises Romanian bakery Vel Pitar on sale to global player

Romanian bakery company Vel Pitar has been acquired by Grupo Bimbo, one of the most prominent players in the landscape, with ValuStrat providing sell-side M&A advisory to Vel Pitar’s shareholders.

Founded in 2001, Vel Pitar produces branded bread, rolls, sweet treats such as donuts and pretzels. Its best-known brands are Vel Pitar, French Toast, Grâu Întreg and Chef Gourmand, which are available in most supermarkets, hypermarkets, and small and medium-sized shops around Romania.

Up until today, Vel Pitar was majority owned by NCH Capital, a US-based private-equity fund which helped establish the company at the turn of the century, following the merger of four NCH Capital owned companies with operations in baking, milling, and retail. Under the wings of the investor, Vel Pitar grew into one of the leading branded baked goods providers in Romania, currently employing more than 2,500 people and operating 10 factories in nine Romanian cities.

The deal with Grupo Bimbo now sees the Mexico-headquartered group take full control of Vel Pitar, marking its entry into the Romanian market. According to data from GlobalData, the local market is expected to see robust growth in the coming years, offering Grupo Bimbo a strong growth outlook.

“We are thrilled to be present in a new market and integrate into our family a significant number of leading grain-based brands, which are aligned with our goal of offering our consumers products made with simple and natural recipes using nutritious ingredients,” commented Rafael Pamias, Chief Operating Officer of Grupo Bimbo.

With Vel Pita on board, Grupo Bimbo has a presence in 34 countries on 4 continents.

Dealmakers

The M&A team of ValuStrat, a Middle East-based consulting firm advised on the sale of Vel Pitar. The firm provided M&A advisory services and supported the transaction’s closing.

Buyer Grupo Bimbo, meanwhile, was advised by Deloitte and law firm NNDKP, among others.

M&A campaign

The deal is the seventeenth for Grupo Bimbo over the past years. Last November, the company bought St. Pierre Groupe in the UK, with US cookies maker Emmy’s Organics and the bakery assets of Aryzta in Brazil among other recent deals. Earlier, Grupo Bimbo acquired two bakery businesses in India (Kitty Bread and Modern Foods) and a US popcorn maker, Popcornopolis.

Disposals have also been in play. Spanish salty-snacks firm Grupo Apex bought the Pop Up popcorn brand from Grupo Bimbo last year, while the Mexican group divested its Mexican confectionery business Ricolino to Mondelez International.