Barry Callebaut has acquired Singapore-based Petra Foods Ltd. Cocoa Ingredients Division, the largest cocoa products supplier in Asia, for $950 million USD. The business has a significant global footprint across four continents with 405,000 metric tons of bean-grinding capacity in seven processing facilities, and posted 2011 sales revenues of $1.3 billion USD. The integration of Petra Foods' Cocoa Ingredients Division will make Barry Callebaut the largest global cocoa processor.
The transaction also includes a long-term agreement with Petra Foods' branded consumer division to supply it with cocoa products covering 75% of its total needs. The transaction is subject to approval by Petra Foods' shareholders as well as regulatory authorities. The closing of the transaction is expected in summer 2013.
Juergen Steinemann, Barry Callebaut's chief executive officer, said the acquisition marks a major step forward in the implementation of the company’s growth strategy. “A stronger integrated position in sustainable cocoa sourcing and processing is important to keep growing our chocolate business over-proportionally, especially in emerging markets,” he said. “The deal also allows us to become a strategic supplier of specialty cocoa powders and meet the growing integrated value chain requirements of our customers and partners."
The company said the acquisition is in line with its strategy for future growth based on the four pillars of expansion, innovation, cost leadership and sustainable cocoa.