Baker & Baker has made its first strategic acquisition, the company reports, after signing an agreement with Portuguese baker Peipen, a producer of largely handcrafted Pastel de Nata.
Peipen has been a direct supplier to Baker & Baker for a number of years, and the acquisition brings production in-house, for further capacity of Pastel de Nata growth while also providing space for expansion through installation of additional sweet bakery lines.
Pastel de Nata – a traditional Portuguese pastry filled with egg custard tart – has seen strong growth with retail and food service customers in recent years in the UK and rest of Europe. Baker & Baker’s portfolio has delivered strong annual sales, as the business anticipates and enables further growth following the acquisition of Peipen’s operations.
The Peniche site, a high quality, modern bakery manufacturing facility, has food safety certifications IFS and FDA, with a total footprint of 5000m2. It currently produces around 1000 tonnes a year, with scope for Baker & Baker to introduce additional product lines and equipment. It currently employs around 60 people, all of whom have been transferred to Baker & Baker from the start of September.
The site currently manufactures other, non-bakery product lines, which will be discontinued by the end of 2022 and enable additional capacity as it becomes wholly focused on specialty bakery products. Baker & Baker has acquired the order book, all equipment and machinery, and has assumed full responsibility for the personnel.
The Peniche site marks the third manufacturing location operated by Baker & Baker in Portugal, in addition to Santo Tirso and Sāo Joāo da Talha, following long-term organic growth in the Iberian region.
“We’re thrilled to have concluded the acquisition of Peipen. It’s a strong business that has supported us as a supplier for many years,” said John Lindsay, European CEO at Baker & Baker.
“The facility complements our existing portfolio by adding an attractive, core bakery line and supports our move towards developing our speciality laminated business in our growing Iberian market and quickly adds much needed capacity.
“We’re confident that Baker & Baker Peniche can deliver further growth for our business, through additional Pastel de Nata listings and the introduction of additional speciality bakery lines.”
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