Target Company Overview

FNB Private Equity, along with the management team and acquirers of Baserria Group, has executed a definitive agreement for the sale of the company, which was originally acquired in 2018. Over the past four years, the group has significantly expanded its distribution area, diversified its product lines, particularly in hams and regional specialties, and achieved growth both through acquisitions and organic expansion. Founded in 1947, Lartigue & Fils has a reputation as a family-owned business specializing in high-end foie gras. The acquisition of Tradition de Vendée in 2020, known for its artisanal charcuterie production, has enriched and broadened the group's product offerings.

The integration of Tradition de Vendée has enabled Lartigue & Fils to create a well-balanced portfolio of premium products that maintain its traditional focus while embracing innovative charcuterie offerings made from locally sourced, free-range pork, free from GMOs and antibiotics. This partnership allows for compliance with animal welfare standards and certifications including “Label Rouge” and IGP, ensuring quality and ethical sourcing.

Industry Overview in France

The French food processing industry is renowned for its rich culinary heritage and diverse product range. In recent years, the sector has experienced robust growth driven by increasing demand for high-quality and artisanal foods. This trend is partly attributed to consumers' rising awareness of health and wellness, leading to a preference for sustainable and ethically-sourced products. As a result, companies in the industry are now pivoting towards organic and natural offerings, aligning with consumer preferences.

Furthermore, the French government has established various initiatives aimed at supporting agricultural sustainability and promoting regional food production. These efforts have bolstered the market for local producers, enabling them to thrive amid growing competition from larger retail corporations. The focus on provenance and artisanal craftsmanship has also paved the way for smaller firms to gain prominence, successfully carving out niches within the expansive market.

In light of these developments, investors have shown a keen interest in the food processing sector as it presents opportunities for profitable growth and investment returns. The ongoing transformation of the industry, characterized by increasing consumer preference for premium products and sustainability, creates a promising environment for both existing players and new entrants.

Rationale Behind the Deal

The sale of Baserria Group comes at a strategic inflection point for the company, as it seeks to embark on a new development phase under the sponsorship of a Family Office that shares similar values to FNB. This transition is anticipated to facilitate continued growth for the Baserria Group, both in terms of organic expansion and external acquisitions. The successful partnership with FNB, characterized by mutual alignment and a shared vision for enhancing product quality and market presence, has positioned the company well to seize new opportunities.

Investor Information

FNB EUROPE FUND SLP is a French investment fund focused on developing small and medium-sized enterprises (SMEs) within the food processing industry, accounting for 70% of its investment portfolio. Created and managed by FNB PRIVATE EQUITY, the fund boasts assets under management amounting to €134.5 million. FNB aims to provide both financial and strategic support to SMEs, addressing their diverse operational challenges while enabling management teams to maintain autonomy.

The fund's investors include government institutions, banks, insurance companies, fund-of-funds, and professionals from the food and private equity sectors. Most are strictly European and predominantly French, fostering a network that benefits the firms within their portfolio through shared expertise and resources.

View of Dealert

From an expert perspective, the acquisition of Baserria Group can be viewed as a well-timed and strategically sound investment. The group has displayed substantial growth over the past four years, with a diverse range of high-quality products that align with current consumer trends favoring artisanal and ethically-sourced food. The focus on premium offerings places the group in a favorable position to leverage the increasing consumer demand for gourmet foods in France.

Additionally, the transition to a Family Office structure is likely to provide Baserria Group with the strategic direction needed to sustain its growth trajectory while maintaining its identity and values. This change can be seen as a testament to the group's stability and potential, further making it an attractive investment opportunity.

Moreover, the backing of FNB EUROPE FUND SLP, with its extensive experience and established relationships in the food industry, offers Baserria the essential resources and support to navigate the evolving marketplace. Given the increasing importance of sustainability and quality in consumer purchasing decisions, the prospects for Baserria Group remain optimistic.

Overall, this deal reflects a sound investment strategy that emphasizes both growth and a commitment to quality, positioning Baserria Group for continued success in a competitive industry.

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