Information on the Target

Biogran is a leading player in the organic food market in Spain, known for its prestigious private label brands. The company excels in innovation, distribution, and customer relationships, and has established itself as an expert in sourcing organic raw materials, managing quality processes, and manufacturing. Biogran employs 128 individuals and operates from two facilities in Madrid.

In recent years, Biogran has experienced significant growth in both specialist channels and major distribution, with sales rising from €27 million in 2015 to €33 million in 2016, while improving its profitability to 17% (EBITDA on sales).

Industry Overview in Spain

The organic food industry in Spain has been undergoing rapid development, influenced by the increasing consumer demand for healthy and sustainable options. As awareness of the benefits of organic products grows, more consumers are shifting away from traditional food sources towards organic alternatives. This trend is particularly evident among younger demographics, who are often more inclined to make health-conscious purchasing decisions.

Spain ranks among the leading countries in Europe for organic agriculture, with a significant amount of land dedicated to organic farming. The country’s favorable climatic conditions enable a diverse range of organic crops, further enhancing its ability to supply both domestic and international markets. Additionally, Spain has seen a rise in organic certification bodies, promoting transparency and trust in organic labeling.

The growth of e-commerce and convenience retail has further bolstered the organic food market, as consumers seek easy access to organic products. Retailers are responding to this trend by incorporating organic sections and expanding their product offerings. This shift has created considerable opportunities for companies operating in the organic space.

Overall, the organic food sector in Spain is poised for continued expansion, fortified by a growing consumer base that prioritizes health and sustainability.

The Rationale Behind the Deal

The acquisition of Biogran aligns with Nazca's investment strategy, which focuses on creating strategic value in family-owned companies that possess ambitious growth plans. Through this deal, Nazca has facilitated Biogran’s transition from a family-run enterprise to a highly professionalized company, while still maintaining its strong family culture.

Wessanen's robust history of developing family businesses in international markets and its commitment to natural and organic food positions it as the ideal partner for Biogran. With Wessanen’s support, Biogran is expected to further solidify its leadership position in the organic food sector in Spain, capitalizing on the emerging growth opportunities in this market.

Information About the Investor

Wessanen is a publicly traded Dutch company that leads the organic food market across Europe, generating approximately €600 million in sales. The company specializes in providing natural and organic food products and is recognized for its commitment to promoting sustainable practices within the food industry.

Wessanen has a proven track record of effectively nurturing family-owned companies and expanding their reach in international markets. Its focus on organic and natural foods aligns well with current consumer trends, making it a strategic investor in the evolving food landscape.

View of Dealert

The acquisition of Biogran by Wessanen represents a promising investment opportunity within the burgeoning organic food market in Spain. Biogran's strong market position and recent sales growth indicate viable future prospects, particularly as consumer trends lean increasingly towards organic and health-oriented products.

Moreover, Wessanen's expertise in expanding businesses on an international scale will likely provide Biogran with the resources and support necessary to continue its upward trajectory. The combination of Biogran’s established presence and Wessanen’s strategic investments creates a robust platform for sustained growth.

However, potential challenges may arise as the organic market becomes more competitive. It will be crucial for Biogran to maintain its innovation and customer engagement to stay ahead of rivals. Nonetheless, with the right strategy in place, this acquisition has the potential to significantly enhance both companies' positions in the organic food sector.

Ultimately, this deal is a strategic match that not only aligns with Wessanen's investment ethos but also promises to elevate Biogran’s operations and market influence.

View Original Article