Chocolate manufacturer Barry Callebaut is to become the globe’s largest cocoa processor with the acquisition of the Cocoa Ingredients Division of Petra Foods, based in Singapore for $950M.
The deal included a long-term agreement with Petra Foods’ branded consumer division to supply it with cocoa products covering 75% of its total needs.
Andreas Jacobs, chairman of Barry Callebaut, said: “This acquisition is an excellent strategic fit that will support our future global growth. The integration of Petra Foods’ Cocoa Ingredients Division into our Group is expected to strengthen Barry Callebaut’s earnings per share.
“This significant transaction will allow us to continue our expansion strategy in all regions and capture additional opportunities through outsourcing and partnership agreements as well as in gourmet.”
Petra Foods’ Cocoa Ingredients Division is the largest cocoa products supplier in Asia with a global sales volume of 265,000Mt. The firm also has 47,000Mt of co-manufacturing volumes.
Its sales revenue reached $1.3bn last year and it employs 1,700 people.
The deal has to be approved by Petra Foods’ shareholders and the regulatory authorities. Completion of the deal is expected by summer 2013.