Europastry freezes IPO for the second time in 2024 amid market volatility

SPAIN – Europastry, the Barcelona-based frozen bakery giant, has once again placed its plans for an initial public offering (IPO) on hold.

This marks the second time the company has deferred its public listing plans in 2024 due to market conditions.

Initially, Europastry planned to go public in June, but rising market volatility led to a postponement in July.

The company revived its IPO plans in September, setting a listing date of 10 October. However, the company announced on 8 October that it had frozen the IPO once more.

In a brief statement, Europastry mentioned that its management and shareholders continue to view the IPO as a strategic objective but provided no specific reasons for the delay.

A company spokesperson declined to offer further commentary. “Further updates on the transaction will be communicated in due course,” the statement added.

The IPO was expected to list Europastry on the Madrid, Barcelona, Bilbao, and Valencia stock exchanges, all of which have shown impressive performance in 2024.

The Madrid Stock Exchange General Index has climbed 15%, and Barcelona’s BCN Global 100 Index has gained approximately 16%. Broader European market trends have also been positive, with the MSCI Europe Index up 13% and the STOXX All Europe Total Market Index rising around 7.9%.

In September, Europastry sought to raise up to €555 million (US$618.3 million) through the IPO, with an indicative share price range between €15.85 and €18.75.

The company intended to use the proceeds to reduce its debt and pursue mergers and acquisitions (M&A) for further growth. Europastry’s turnover reached €1.3 billion in 2023, and its M&A activity has played a crucial role in its expansion.

The company has 27 production facilities and serves over 80 markets.

Recent acquisitions include DeWi Back Holding, a German frozen bakery products company, in March, and De Groot Edelgebak, a Dutch distributor of frozen breads and pastries, in August.

Europastry has also been actively expanding beyond Europe, acquiring the frozen bakery business of U.S.-based Dawn Foods in 2022. Other notable acquisitions include Spanish pizza maker Casa Bona and Portuguese bakery Confeitaria Torres.

Despite the IPO delay, Europastry has maintained steady growth in 2024. As of June, the company’s turnover reached €714 million, with adjusted EBITDA at €114 million.

For the full year, Europastry is targeting turnover growth in the low-to-mid teens range, driven by its diversified portfolio of bakery products, including bread, pizza, pastries, pies, and sandwiches, and brands such as Dots, Sophie, and Panburger.

The IPO remains a key part of Europastry’s long-term strategy, and market watchers will be closely monitoring the company’s next steps in its pursuit of growth through public investment and M&A opportunities.

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