Arluy is a family-owned company, founded by brothers Arturo and Javier San Juan in 1988. The producer of both own-brand private label biscuits has experienced strong growth in recent years, posting a turnover of more than €40m ($46.7m) in 2017.
“This acquisition strengthens Biscuit International's position as one of Europe's leading producers of private label sweet biscuits in Europe and develops our partnership with our main European and Spanish customers,” said Biscuit International’s CEO, Giampaolo Schiratti.
Following the Arluy transaction, Biscuit International’s sales will represent more than 10% of the European private label sweet biscuit market. Spain will become the Group’s fourth largest market after France, the Netherlands and Germany.
According to IRI, the Spanish sweet biscuit market is currently valued at over €900m ($1.04bn) and growing at 3% per annum.
Excellent complement
“The Spanish sweet biscuit market represents a real growth opportunity for Biscuit International,” added Schiratti.
“Arluy has a strong experience in the production and distribution of sweet biscuits in Spain, and the company is an excellent complement to our Group in terms of geography and product lines.”
Biscuit International expects to leverage on Arluy’s production capabilities – the company has invested around €20m ($23.3m) in its plant in the Rioja region over the past five years – as well as its product range, which include the brands Arluy, Reglero, Río Zahor and Flora.
Following completion of the deal, Arturo San Juan, Arluy’s co-founder and current MD, will continue to be involved in the commercial management of the business, but will hand over the reins to Guillermo Flores, former CEO of United Coffee.
Sustainable and secure business
“This acquisition will allow our family business to grow in Europe where we see significant growth opportunities in the sweet biscuit sector,” said San Juan.
“Biscuit International is a major player in its market, and I am convinced that its project for Arluy will also strengthen our position in Spain by developing partnerships with our main customers. I am very proud of our achievements; through the hard work of all our staff over the past 30 years, we have created a sustainable and secure business with a great future with Biscuit International.”
Biscuit International was advised by Oaklinks (financial advisor), Simmons & Simmons and Cleary Gottlieb Steen & Hamilton LLP (legal advisors). Cuatrocasas (legal advisor) advised the Arluy management.
Biscuit International is one of Europe’s leading players in the private label sweet biscuit market, and owns Groupe Poult in France, Banketgroep and Stroopwafel & Co in the Netherlands, A&W Feinbackwaren in Germany and NFF in the UK.
The Group produces 130,000 tons of biscuits and waffles from 14 factories in Europe, and generated sales of €390m ($455m) over the past year.
It is owned by French equity firm Qualium Investissement that has approximately €1.2bn ($1.4bn) of assets under management.