Cerealto to divest pasta business to Cerealis in shift towards snacking
While the pasta unit has been profitable and has benefited from recent capital investment, Cerealto indicated that the business would be better positioned under a dedicated pasta operator.
SPAIN – Cerealto, a major European private-label manufacturer of biscuits, cereals, and snacks, has agreed to sell its pasta business and the Venta de Baños facility in Palencia to Portuguese food producer Cerealis, sharpening focus on high-growth snacking and breakfast categories.
The deal awaits approval from Spain’s CNMC and Portugal’s AdC, ensuring no disruptions to jobs, operations, or customer supply at the profitable pasta unit.
The divestment reflects Cerealto’s strategic pivot amid retailer consolidation and margin pressures in private-label manufacturing, channelling resources into snacks such as bars, corn and rice cakes, and breakfast cereals, sold to major retailers across Europe, the UK, the US, and Mexico.
CEO Bosco Fonts emphasized the pasta division’s strong performance and recent capital investments but noted it thrives best under a pasta specialist like Cerealis, which gains scale in a resilient category despite durum wheat volatility.
Cerealto, backed by Davidson Kempner and Afendis Capital, eyes snacking’s superior expansion potential, where its expertise positions it for innovation in health-focused, indulgent products amid 8 to 10% category growth.
The transaction guarantees workforce continuity at Venta de Baños, preserving employment and conditions during a seamless transition for third-party clients. A transition phase will begin once regulatory approvals are secured.
Cerealis expands its Iberian footprint, boosting pasta production for private-label and branded groups.
This mirrors broader F&B trends of portfolio streamlining, as mid-sized firms specialize amid clean-label demands and supply chain strains.
Cerealto’s move follows peers’ divestments of non-core assets to fund NPD in premium snacks, with the aim of achieving stronger EBITDA margins.
For Cerealis, the acquisition strengthens its industrial footprint and scale in a category that remains structurally resilient in Europe despite recent volatility in durum wheat pricing.
The deal reflects a broader trend among mid-sized food manufacturers to streamline portfolios and double down on core capabilities, particularly in private label, where retailer consolidation and margin pressure are driving the need for operational focus and category specialism.
Cerealto says the transaction guarantees continuity of operations at the Venta de Baños site, with no anticipated changes to employment, working conditions or day-to-day activities.
The deal underscores disciplined focus driving value in a consolidating €200 billion (US$236.91B) European bakery and snack market.
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