Fortis takes two bites into bakery sector

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Fortis Private Equity and the existing management team have jointly acquired J.M. Smithuis Pre Pain and industrial bakery Bakkerij J.M. Smithuis.

The transaction was sourced via a PricewaterhouseCoopers-led auction process that took approximately three months before closing on 8 January 2008. This transaction is the first of two acquisitions in the bakery sector for Fortis, the other being the buyout of Maitre Paul, another large Dutch bakery.

According to Arthur Tjon at Fortis Private Equity, although 'bread' is an extremely mature market, the industry is undergoing changes in several areas. Bread is a key category for retailers. Suppliers have an increasingly important role in assisting supermarkets in meeting and anticipating changing consumer demand and higher expectations in terms of product quality and range. From a growth perspective, the bakery industry is still undergoing a transformation from an artisan mentality to a professional industry. Combined with the industry structure, which is still fragmented, this offers ample opportunities for growth. (Page 25).