Associated British Foods has disclosed the acquisition of Australian bakery The Artisanal Group.
The UK-based business – which sometimes reveals its M&A activity within financial filings – made a brief mention of the transaction in a trading update for the second half of its financial year yesterday (5 September).
ABF, which was providing details on its performance so far in the half to 14 September, said: “During the period, we completed the acquisition of The Artisanal Group, a leading manufacturer and wholesaler of high‐quality baked goods in Australia, primarily serving cafes, restaurants and hotels.”
The Artisanal Group operates under three brands: Noisette, Brasserie Bread, and Jaune. It manufactures products including breads, croissants, pastries and cakes.
"The Artisanal Group will continue to be led and run by the existing founders, management team and employees," an ABF spokesperson added.
The deal, struck for an undisclosed sum, sees ABF add to an Australian portfolio that includes Tip Top, one of the country’s more prominent bakery brands. ABF’s assets in Australia also include meats business Don and houmous supplier Yumi’s.
In the trading update, ABF said its “Australia and New Zealand‐focused brands have remained resilient in a challenging consumer environment”.
Overall, the publicly listed group said its grocery business, which includes operations in the UK, continental Europe and North America, “continued to perform well”. ABF said it expects the division’s sales to grow by around 3% during the half.
ABF’s grocery arm includes Ryvita in the UK and Capullo cooking oil in North America. The company also owns the hot drinks brands Twinings and Ovaltine.
ABF is a major supplier of sugar and of ingredients to the bakery sector. It also owns the Primark clothing retail chain.
In a statement, ABF chief executive George Weston said the group’s grocery and ingredients division “have grown well in the second half, in line with our expectations, and we will continue to build on this momentum”.
Profits from the group’s sugar business “remains ahead” of last year, Weston added, but below the company’s previous expectations amid a fall in European sugar prices.
ABF is scheduled to report its full-year financial results in November.
