Premium patisserie deal: Emmi enters “put option” agreement with Mademoiselle Desserts Group

05 Jul 2024 --- Swiss dairy manufacturer Emmi Group is planning to acquire French Mademoiselle Desserts Group, which specializes in innovative premium patisserie, for an enterprise value of around €900 million (US$974.38 million). The “put option” agreement aims to expand Emmi’s market presence in the premium desserts category.

The contemplated transaction would complement Emmi’s dessert portfolio by including French-inspired desserts from Mademoiselle, which has a prominent presence in the in-store bakery and foodservice area and generated annual sales worth nearly €420 million (US$454.7 million) last year.

“We aim to unite the ‘savoir faire’ of the French dessert-making and patisserie from Mademoiselle Desserts with the dessert creations of our passionate ‘pasticceri’ and innovative American and Latin-inspired desserts from Italy and the US under the Emmi Group umbrella,” says Ricarda Demarmels, CEO of the Emmi Group.

“This strategically important step would allow us to exploit the global growth opportunities in the premium desserts category and take our portfolio transformation further.”

The completion of the transaction remains subject to the consultation of the relevant employee representative bodies of Mademoiselle Desserts and the approval by  competition and regulatory authorities.

The premium dessert business accounts for 9% of the Emmi Group’s total sales.Creating a “desserts powerhouse”
The premium dessert business accounts for 9% of the Emmi Group’s total sales and it has a leading position in the European dessert market, with twelve production facilities in France, the UK, the Netherlands and Belgium.

The proposed acquisition of the Mademoiselle Desserts Group would add French-inspired desserts and strengthen Anglo-Saxon-inspired cakes and desserts to Emmi’s portfolio, which the company says will “combine the great dessert traditions.” 

Didier Boudy, the current CEO of the Mademoiselle Desserts Group, is set to assume responsibility for the new Emmi “desserts powerhouse.” This would bring together the Mademoiselle Desserts Group with existing Emmi Dessert companies from Italy and the US to advance the strategic development of the dessert business.

Growth prospects and financing
Emmi’s acquisition of Mademoiselle Desserts Group would correspond to an implied EBITDA multiple, which is lower than the current multiple for the Emmi Group. Both sales growth and operating margins are “above average” compared to the Emmi Group. 

Emmi also expects medium-term potential for growth synergies after the acquisition, which would further increase its strategic premium desserts niche to account for around 17% of total sales. 

The dairy supplier intends to finance the transaction mainly through “new debt and surplus liquid funds.”