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Waarschoot, 1 July 2003
Today, 1 July, sees the takeover of the chilled pasta division from the French group Agis by Ter Beke. This acquisition is for several reasons strategically important to the international development of the Ter Beke group. This takeover enhances the range offered by Ter Beke. It will immediately contribute positively to the group’s results.
As from today, 1 July 2003, Ter Beke acquires the chilled pasta division Di Pasto from the French group Agis. This completes the acquisition process that Ter Beke previously announced on 16 June.
The Agis group (Avignon) is a leading food company, which has achieved a significant position in the rapidly growing French market for chilled ready meals, in particular in three dynamic product groups: chilled ready-made meals, fried exotic products and chilled pasta meals. Di Pasto achieved in 2002 a turnover of € 11 million with about 100 employees. Its production unit is located in Alby-sur-Chéran (Haute-Savoie, France).
Strategic significance
This acquisition is strategically important to the international development of Ter Beke for several reasons:
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It provides Ter Beke now also with a French identity, which is important for the position of the group both in France and in other international markets.
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Di Pasto currently numbers all the important French retailers (Carrefour, Auchan, Casino, Cora/Match, Monoprix, Leclerc, and Système U) among its clients. This gives Ter Beke immediate access to some of Europe’s leading
retailers.
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The takeover of the French production unit spreads further the production risk of the Ter Beke group, as up till now all production was located solely in Belgium.
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The combination of the existing turnover in France with that of Di Pasto provides Ter Beke with a leading position in the French market for chilled pasta based meals.
France is a key market
The development of the market for ready-made meals, and in particular that for chilled pasta based meals is in full development in France. This major market therefore also constitutes a key market in Ter Beke’s European-wide strategy.
Ter Beke has realized steady growth in France since 2000, especially with lasagne and expects to achieve a turnover of about 10 million EUR in France in 2003.
With the acquisition of Di Pasto this turnover will more than double to about 21 million EUR on an annual basis, making Ter Beke the market leader in the chilled pasta meals segment.
In the long term Ter Beke anticipates further growth through the anticipated introduction of its existing range of products to its newly acquired customers.
Products
The Di Pasto product range expands the assortment offered by Ter Beke. In addition to chilled lasagne, the newly acquired company produces many other chilled pasta meals (e.g. ravioli, cannelloni, tagliatelli, …) and gratins (such as vegetable based gratins).
In the long term, this complementary range gives Ter Beke the opportunity of offering these products to its existing European customer base.
Financial effects
The takeover of Di Pasto will contribute positively to the results of the group from the 1st year onwards, both in terms of cash flow and in terms of earnings after taxes.
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