Biscuit International acquires Arluy, strengthens Spanish presence

02 Aug 2018 --- Biscuit International, one of Europe’s players in the private label sweet biscuit market, has acquired Arluy, the fifth largest producer and distributor of sweet biscuits in Spain. Founded in 1988, Arluy is a family company based in the Rioja region which has experienced substantial growth in recent years. The company is now the fifth largest manufacturer of biscuits in Spain, with an annual turnover of more than €40 million (US$46.7 million) in 2017.

Like other Biscuit International companies, Arluy supplies both own-brand biscuits and private label biscuits to its customers, who include key retail chains (70 percent of sales).

Biscuit International currently owns Poult in France, Banketgroep in the Netherlands, A&W Feinbackwaren (A&W) in Germany and NFF in the UK.

The acquisition of Arluy is a new step in Biscuit International’s development strategy which consists of expanding its product offering and geographical footprint both through external and organic growth, according to the company. The announcement follows the acquisitions of A&W Feinbackwaren in Germany and NFF in the UK.

With this new operation, Biscuit International reinforces its position as a significant player in the European private label sweet biscuit market and establishes a stable position in Spain. Following this transaction, Biscuit International’s sales will represent more than 10 percent of the European private label sweet biscuit market, and Spain will become the group’s fourth largest market after France, the Netherlands and Germany.

Biscuit International expects to leverage on Arluy’s products range, the company's production capabilities, Arluy’s partnership with leading distributors in the Iberian Peninsula and the expertise of its management team to seize growth opportunities in the Spanish sweet biscuit market. The Spanish sweet biscuit market is estimated at over €900 million (US$1 billion) according to IRI, a market research company, and is growing at 3 percent per year.

The acquisition of Arluy will also enable Biscuit International to exploit cross-selling opportunities by offering Arluy's private label and own-brand products to its European customers on the one hand, and its existing product range to local and national Spanish distributors on the other, to strengthen its partnership with them.

Following this transaction, supported by the company's shareholders and management, the Managing Director and Arluy’s Co-founder, Arturo San Juan, will continue to be involved in the development and the commercial management of the business, alongside Guillermo Flores, former CEO of United Coffee, who will assume the role of Managing Director of Arluy.

Giampaolo Schiratti, Biscuit International CEO, explains: “The Spanish sweet biscuit market represents a real growth opportunity for Biscuit International. Arluy has a strong experience in the production and distribution of sweet biscuits in Spain, and the company is an excellent complement to our group regarding geography and product lines. This acquisition strengthens Biscuit International's position as one of Europe’s leading producers of private label sweet biscuits in Europe and develops our partnership with our main European and Spanish customers.”

Arturo San Juan, Managing Director of Arluy, Shareholder and Co-founder, adds: “This acquisition by Biscuit International is great news for Arluy. It will allow our family business to grow in Europe where we see significant growth opportunities in the sweet biscuit sector. Biscuit International is a major player in its market and I am convinced that its project for Arluy will also strengthen our position in Spain by developing partnerships with our main customers. I am very proud of our achievements here at Arluy and through the hard work of all our staff over the past 30 years, we have created a sustainable and secure business with a great future with Biscuit International.”

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