Lotus Bakeries acquires Swedish company Annas Pepparkakor

The Belgian bakery group Lotus Bakeries NV, Lembeke, has announced the acquisition of shares of Annas Pepparkakor Holding AB of Sweden from Accent Equity, a Swedish private equity fund.
The initial purchase price paid is based on an enterprise value of SEK 164 million (equivalent to euro 16,5 million). Depending on the year-end results of Anna’s as per 30th of June 2009 an additional amount will be paid on the EBITDA growth. In any case the enterprise value paid will be lower than 8 times recurring EBITDA. The acquisition will be fully financed by an unsecured bank loan to be repaid over seven years. The closing of the acquisition is foreseen at the end of November 2008. The results of Anna’s will be consolidated within the Lotus Bakeries group figures as per 1st of December 2008.


Annas Pepparkakor is founded in 1929 and a high quality producer of “Anna s Pepparkakor” a traditional Swedish biscuit. Pepparkakor is a thin and crispy biscuit enriched with cinnamon and ginger spices. The Anna’s products come in different flavours but always based on the same dough and traditional recipe. The company has shown a steady organic growth over the years. The total turnover as per year-end (June 30, 2008) amounts to SEK 172 m (€ 17,3 m). Anna’s has realized a recurring EBITDA of 12 % on turnover.


The homemarket and origin of Anna’s is Sweden which represents about 28 % of the turnover. Anna’s is the best known brand of Pepparkakor and the market leader in Sweden. In Sweden, the Anna’s brand will be retained, supported and further expanded.“It is with great satisfaction we note that Anna’s North American volumes have grown from a foothold to the company’s single largest market during Accent’s ownership,” comments Jan Ohlsson, CEO of Accent Equity Partners, advisor to Accent Equity 2003. “Anna’s started as a family-owned business. After expansion to more than 30 countries world-wide, we are pleased to see that Lotus Bakeries with similar origin as well as complimentary products and markets will lead the future development of Anna’s”


IKEA is Anna’s single largest customer offering Anna’s products worldwide in its food departments. Total sales to IKEA and exports to countries such as Finland, UK, Japan Australia, Norway and Portugal represent roughly a third of Anna’s turnover. Recently North America became Anna’s largest market which represents 40 % of their total turnover


Anna’s two production facilities are located in Sweden (in Tyresö near Stockholm) and Canada (in High River near Calgary). The total number of employees amounts to 67 people of which 50 are employed in Tyresö and 17 in High River. “Anna’s management and staff are enthusiastic about getting a new owner with a family-oriented background like ours,” says Joakim Inaeus, CEO of Anna’s. “We foresee great growth opportunities by becoming part of Lotus Bakeries’ family of branded products. The two companies compliment each other perfectly, both in regards to products and markets.”


Lotus Bakeries Group reinforces sustainable growth and profitability by concentrating on authentic specialities within the biscuits, ginger bread, waffles and pastries markets. “The acquisition of Anna’s fits perfectly into the Group’s strategy to focus on high quality authentic specialties compatible with a branded strategy and with international potential,” says Matthieu Boone, CEO of Lotus Bakeries.


Furthermore, Lotus Bakeries wants to pursue a brand policy with products that are distinctive in terms of quality and consumer satisfaction, driven dynamically by a strong commercial organization and effectively targeted marketing campaigns. In this way, Lotus wants to strengthen or acquire a leading position for its specialties. The acquisition of Anna’s fits perfectly into the Group’s strategy to focus on high quality authentic specialties compatible with a branded strategy and with international potential.

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