Belgian food group Ter Beke has completed its takeover of French firm Agis's chilled pasta division Di Pasto. The move finalises the acquisition process that Ter Beke first announced on 16 June 2003.
The development of the market for ready-made meals, and in particular that for chilled pasta based meals is in full development in France. The deal will make Ter Beke the market leader in the French chilled pasta meals segment.
The acquisition is seen as strategically important to the international development of the Ter Beke group. It provides the company with a French identity and access to important French retailers such as Carrefour, Auchan, Casino and Monoprix.
The takeover of the French production unit also spreads the production risk of the Ter Beke group, as up till now all production was located solely in Belgium.
Ter Beke believes that the takeover of Di Pasto will contribute positively to the results of the group from the first year onwards, both in terms of cash flow and in terms of earnings after taxes.
Ter Beke reported gross sales of €185.6 million, a net profit of €3.5 million and a net cash flow of €16.3 million. In the first quarter of 2003 gross sales amounted to €48 million and earnings after tax to €1.2 million.
The group currently operates six production sites, five of which are in Belgium. The sixth plant is situated in France. It employs over 1.000 people.
Avignon-based Agis group is a leading food company which has achieved a significant position in the rapidly growing French market for chilled pasta meals. Di Pasto, which employs a staff of 100, achieved a turnover of € 11 million in 2002.