Edita wants Ole bakeries producer
EGX-listed Edita Food Industries has submitted a non-binding letter of intent to acquire the Egyptian Belgian Company’s assets, according to a statement (pdf). The Egyptian Belgian Company manufactures Ole-branded croissants, cakes, and donuts. The potential acquisition covers all of the company’s real estate assets (including land plots and buildings), as well as machinery, equipment, and production lines. Edita will now begin its due diligence process, which it expects to wrap on or before 15 December. The company will then draw up its sale and purchase agreement, with an eye to finalize the drafting process by 15 January 2022, according to the statement.
A senior Edita exec called the acquisition a “major milestone” in a conversation late yesterday, saying it will allow the country’s largest snackfoods company to add “significant” production capacity in the baked goods segment amid rising market demand. That new production capacity would also make it possible for Edita to “accelerate its go to market” timeline for new products as the perennial R&D leader looks to widen its portfolio.
Advisors: Zilla Capital is managing the transaction.