Food group IAWS expands with purchase of French bakery business

FOOD Group IAWS has expanded its par-baked division with the purchase of French-based Groupe Hubert.

It will pay €130 million to secure the business involving an initial payment of €125m cash plus a further €5m provided profit targets are met.

Groupe Hubert develops and distributes bakery products to the bakery craft and food service sector in France and has about 20,000 clients on its distribution list.

Its main brand is its “Coup de Pates” range of savoury goods and bakery products.

Last year the company had a turnover of €120m and operating profits of €10.6m.

IAWS announced also the existing management team will remain.

This purchase is Owen Killian’s first major deal since taking over from Philip Lynch as chief executive in 2003.

Shares rose 35 cents to €11.60 in early morning dealings following the announcement.

They fell back slightly but were still up 30 cent by mid-afternoon as the markets absorbed the positive effects the deal will have on the group.

“The deal is bang in line with our group strategy,” said Mr Killian, in an interview following the announcement of the takeover.

“France was the inspiration for the group’s strategic shift into par-baked foods,” he said.

Both the group’s par-baked businesses, Cuisine de France located in Dublin, and its British-based Delice de France, took their inspiration from French breads, pastries and finger foods, he said. The French bakery market is worth an annual €16 billion while bread consumption from baguettes to pastries means the French consume much more than the Irish and British, he said.

At this point IAWS has key markets in the US, Canada, Ireland, Britain and now France for its range of goods.

In Canada the group has linked up with restaurant chain, Tim Hortons with 2,000 outlets.

The primary aim is to supply all of the outlets with the type of product developed and expanded by IAWS since its first acquisition of Cuisine de France.

The purchase of La Brea on the West Coast of the US has given it nationwide distribution in the US while the group continues to develop its Cuisine operation in Chicago.