Parle Products, India’s largest biscuit company, is in talks with private equity firm Bridgepoint to consider buying Dr. Gerard, the second largest biscuit producer in Poland.
The Polish biscuit maker, which was once part of Groupe Poult of France, was bought by EU middle-market-focused Bridgepoint for an undisclosed amount in October 2013. The company is currently valued at Rs. 1,000-1,200 crore, though one of the people said it could be as high as $200-300 million euros (about Rs .1,600-2,400 crore).
Bridgepoint appointed Houlihan Lokey for Dr. Gerard’s exit earlier this year, but the ongoing Russia-Ukraine war and the geopolitical volatility in Europe slowed the process considerably. There is still no guarantee that Parle’s negotiations will lead to a transaction.
Dr Gerard, which was launched in 1993, has a portfolio of over 200 biscuits and salty snacks and two production facilities in Poland. Its core business is in cookies and chocolate products. Its products are exported to 30 countries.
If successful, this will be the first acquisition by Parle, a conservative company with a focus on building brands instead of buying them.
“Biscuit makers are all trying to upgrade their offering through premiumisation. Parle is still predominantly a mass brand, and an acquisition will help access a ready-made portfolio. Dr Gerald has been a target for a long time because it’s PE-owned, but Parle has never bought anything in India, let alone cross the border.
For a record 10 years in a row, Parle has topped the rankings for most chosen FMGG brands, according to a report by Kantar India. It is followed by Amul, Britannia, Clinic Plus, and Tata Consumer Products in the latest 2021 report, which ranks the most chosen FMCG brands based on consumer reach points.
The company, which retails brands such as Parle G, Monaco, and Melody, posted sales of Rs 13,682 crore for March 2021, outpacing rivals including Britannia and Nestle to become the country’s biggest food company by annual revenue.