Swiss chocolate products manufacturer Barry Callebaut has agreed to acquire cocoa ingredients unit of Singapore-based Petra Foods for $950m.
The proposed acquisition is expected to expand Barry Callebaut's cocoa sourcing and processing capabilities, while strengthening its presence in the emerging markets.
Petra Foods' cocoa ingredients division is a leading cocoa products supplier in Asia and it has a sales volume of 265,000 tons globally. It has seven processing plants in Malaysia, Indonesia, Thailand, Brazil, Mexico, Germany and France, with total bean grinding capacity of 405,000 tons, and sales offices in Singapore, the Netherlands and the US.
The deal includes a long term agreement under which Barry Callebaut will supply Petra Foods' branded consumer division with cocoa products covering 75% of its total needs.
The transaction, which is on a cash/debt-free basis, is expected to be completed in summer 2013. Barry Callebaut plans to fund the transaction through loans from banks.
The deal is subject to clearance by Petra Foods' shareholders as well as regulatory authorities and is expected to accretive to Barry Callebaut's earnings per share in the fiscal year 2014/15.