The Terrena cooperative is set to acquire Tipiak, a family-run company based in Nantes and specialising in cereals and ready meals. The experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, analyse this latest move in the agri-food sector.
With this new acquisition, the agri-food cooperative, which owns consumer brands such as Paysan Breton, Douce France and Père Dodu, will acquire a company with a turnover set at €239 million in 2022.
A success story in the food industry
Tipiak S.A. is one of France’s historic food brands. It all began in 1967. Based in Nantes, Tipiak was born from the merger of two century-old food companies owned by the Groult and Billard families. Although the brand made its name with a unique communication campaign featuring three Bigouden women and the slogan “Tipiak, Pirates”, Tipiak’s growth was driven by an aggressive development strategy. In 1988, the group was listed on the Paris stock exchange to support its growth. Over the years, the group has diversified its production into two sectors: cold (aperitifs, cocktails, ready meals and frozen foods) and hot (groceries, cereal dishes, puff pastry products for garnishing) and has expanded internationally.
Stock market exit
The majority shareholders, Maison Groult, Société de Gestion Billard, and Mr Hubert Grouès, have entered into exclusive negotiations with a view to Terrena acquiring a majority stake representing approximately 78% of the capital of Tipiak S.A. at a price of €88 per share. This brings the total value of Tipiak S.A. to €80 million. Following this first step, Terrena is expected to launch a simplified tender offer to acquire the remaining shares. Tipiak would then be delisted from the Paris stock exchange and become part of the cooperative.
What are the reasons behind the disposal?
As reported on the CFNews website, Tipiak S.A., a long-established player in the French agri-food sector, has been struggling in 2023. Turnover for the first half of 2023 fell by 0.3% to €99.8m, while EBITDA fell by 45% over the same period. This setback was mainly due to the loss of a major international contract, which had a significant impact on the cold food division.
Diversification strategy
The acquisition of Tipiak brings the Terrena cooperative seven production sites in France and around 1,500 employees. The cooperative is thus rounding off its portfolio with a company specialising in cereal products. For a group already heavily involved in meat production, this is a welcome diversification. For 2022, Terrena has announced sales growth of 8% to €5.4 billion, with gross operating profit (Ebitda) of €135 million. This performance was driven by poultry and beef production, with Galliance, France’s second largest poultry producer, and Elivia, the largest beef producer, as the two mainstays. The acquisition of Tipiak will enable the cooperative to gain a foothold in the cereals agri-food sector.
Our experts at your side
Today’s uncertain macroeconomic climate favours diversification. Following the example of Terrena, some food giants are now looking to acquire complementary businesses in order to multiply their market entry points. AURIS Finance’s experts are sector specialists. They advise and support agri-food companies throughout their acquisition or divestment process.
