EBITDA multiple for acquisition below Emmi group average (Il Sole 24 Ore Radiocor) - Zurich, 05 Jul - The Swiss diary product group Emmi said that it has entered into a put option agreement to buy the French dessert maker Mademoiselle Desserts based on an enterprise value of around 900 million euros.

"This transaction would enable the Emmi Group to continue to expand its market presence in the premium desserts category as part of its proven strategy and focused internationalisation. This contemplated transaction would complement Emmi's dessert portfolio to include French inspired desserts from a company with a leading presence in the in-store-bakery and food service area," the Swiss group said in a statement.

Mademoiselle Desserts generated annual sales of around 420 million euros in 2023 with a workforce of approximately 2,000 employees.

Emmi noted that it has conducted 45 acquisitions in the last 30 years.

It added that the implied EBITDA multiple for Mademoiselle Desserts is lower than the current multiple for the Emmi Group. However, both the sales growth and operating margins of the French company are above average compared to the Emmi group.

"There is also medium-term potential for growth synergies.

After this contemplated acquisition, the strategic premium desserts niche would account for around 17 percent of total sales. The Emmi Group intends to finance the contemplated acquisition mainly through new debt as well as surplus liquid funds," Emmi said.

The impact of the acquisition on Emmi's full-year results "cannot yet be reliably estimated," it added. Emmi reiterated its guidance for the 2024 for the current business and also confirmed its medium-term guidance and its dividend policy.

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(RADIOCOR) 05-07-24 11:58:20 (0282) 5 NNNN