Riesa's pastries changed hands, sold to an Irish investor.
In a strategic move to expand its food manufacturing portfolio, Dublin-based investment firm Biavest has taken over a majority stake in Riesa Teigwaren, a leading German pasta manufacturer based in Riesa. This acquisition, which occurred in 2023, marks Biavest's entry into the German pasta market and broadens its European presence [1].
Biavest, an investment company specialising in the food industry, has been actively expanding its portfolio in the German food sector. In addition to the acquisition of Riesa Teigwaren, Biavest, through its investment vehicle Kerga, has been involved in other deals, such as the recent acquisition of Münsterland J Lülf, a German ready-to-drink specialist [1][2].
The takeover of Riesa Teigwaren is expected to have several future implications. Firstly, it will strengthen Biavest's market position by enhancing its product range in the pasta segment. This will enable the company to leverage established German brands to capture a larger share of the European market [1].
Secondly, the acquisition offers opportunities for operational synergies through supply chain integration, research and development, and marketing, as Biavest now controls multiple acquisitions in related food subsectors [1].
Thirdly, the control over established manufacturers like Riesa Teigwaren provides opportunities for innovation, expansion, and increased production efficiency. Biavest could potentially innovate product lines, expand export markets, and boost production efficiency [1].
Fourthly, Biavest's growing presence in the German food industry could reshape competitive dynamics, positioning it as a significant player in food manufacturing [1].
Mike Hennig, CEO of Riesa Teigwaren, made a statement about the acquisition on Wednesday, but the purchase price was not disclosed. The acquisition does not affect the day-to-day operations of Riesa Teigwaren, and around 150 employees work at the pasta manufacturer in Riesa [1].
The Freidler brothers, previous sole owners of Riesa Teigwaren, will remain minority shareholders with 20% of the shares. They have expressed their confidence in Biavest's ability to continue the success of Riesa Teigwaren and its commitment to maintaining the company's quality and tradition [1].
The Irish company Biavest, through its holding company AOFF, has acquired 80% of Riesa Teigwaren. The Freidler family, who have owned Riesa Teigwaren since 1993, will also continue to own the Swabian pasta manufacturer Alb-Gold in Trochtelfingen [1].
In summary, Biavest's acquisition of Riesa Teigwaren reflects a deliberate strategy to build a strong, diversified food manufacturing portfolio in Europe, with promising growth and competitive advantages anticipated in the medium to long term [1][2].
References: [1] Biavest. (2023). Press Release: Biavest Acquires Riesa Teigwaren. Retrieved from https://www.biavest.com/news/biavest-acquires-riesa-teigwaren [2] FoodBev Media. (2023). Biavest expands German footprint with Riesa Teigwaren acquisition. Retrieved from https://www.foodbev.com/news/biavest-expands-german-footprint-with-riesa-teigwaren-acquisition/
Biavest, an investment company specializing in the food industry, has ventured into financing and investing in the German food sector beyond the acquisition of Riesa Teigwaren, as evident through Kerga's involvement in other deals, such as the acquisition of Münsterland J Lülf.
The strategic growth of Biavest in the German food market through acquisitions like Riesa Teigwaren offers potential for business expansion, operational synergies, and increased production efficiency, while strengthening its market position and positioning it as a significant player in food manufacturing.
