Acquisition

Valora acquires Back-Factory

Back-Factory becomes part of the Valora Group.
Back-Factory
Back-Factory becomes part of the Valora Group.

The Swiss Valora Group intends to expand its food service business in Germany, acquiring Back-Factory, a German-based snack professional and system caterer with more than 80 outlets.

Back-Factory has a strong presence, particularly in inner-city locations, and for a number of years has focused exclusively on larger units than the Backwerk brand acquired by Valora in 2017, which sometimes occupies smaller spaces in travel locations.


"With the acquisition of Back-Factory, the Valora Group is strengthening its core food convenience business as part of its growth strategy, as intended, also through acquisitions in existing regions, while benefiting from market consolidation," the Valora Group lets it be known in the official announcement.

Valora will acquire Back-Factory from Harry-Brot, Germany's largest bakery products manufacturer, probably on November 1 - provided the German Federal Cartel Office gives its approval. The companies have agreed not to disclose the purchase price or other terms. "It will be financed from existing financial resources," says the official announcement.

Following the takeover, Valora will continue to climb up the rankings of Germany's top-selling gastronomy companies or systems (in 2020, Valora is ranked 11th in the rankings of Germany's largest gastronomy companies, with an estimated EUR 185 million in sales and 487 units).

Back-Factory is the Valora Group's latest addition to its food service platform in Germany, which currently includes the Backwerk and Ditsch brands. "Back-Factory's approach, with its self-service concept and wide range of cold and hot snacks, is comparable to that of our Backwerk bakery format," explains Thomas Eisele, CEO Valora Food Service. "In addition, Back-Factory is an excellent complement to our German store portfolio of the Backwerk and Ditsch brands, which currently has some 500 outlets, with complementary locations, and we are making further inroads into city centre locations."

Michael Mueller, CEO of the Valora Group, says: "We look forward to welcoming Back-Factory to Valora very soon. Valora has a strong expertise in the food convenience business and a proven integration capacity following acquisitions. Thanks to Back-Factory, we will strengthen our market position and benefit from interesting economies of scale as a result of its growth. Moreover, this expansion reflects our conviction that the food convenience business will remain attractive in the future."
About Back-Factory
Harry-Brot founded Back-Factory around 20 years ago, and the first Back-Factory store opened in Bielefeld in 2002. The classic self-service bakery developed into a snack provider with around 80 franchise and self-directed stores nationwide. Back-Factory generated external sales of around EUR 80 million in 2019 and achieved EBITDA of just over EUR 5 million.

tags:
Valora Germany
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