Context

Ares Management has led a €300 million ($346 million) single-asset continuation fund to extend the ownership of Europastry, currently held by MCH Private Equity (who originally invested in 2011). The transaction includes participation from the Asset Management Umbrella Fund (advised by the EIF) and Newbury Bridgepoint. This strategic move follows Europastry’s decision to cancel its IPO in 2024 due to unfavorable market conditions. The structure provides liquidity to MCH's older fund investors while allowing MCH and the Gallés family to maintain their stakes and support the company’s "solid growth prospects." The capital will be used to further Europastry's internationalization strategy, particularly in the US and Portugal, and to fund its intensive €124M+ annual R&D and technology investment program.

Target

Europastry is a global leader in the frozen bakery dough sector. Its business model focuses on high-tech production and distribution of frozen bread, pastries, and snacks across three main channels: artisan bakery, retail, and foodservice. The company’s value proposition centers on "innovation-led tradition," utilizing 30 production facilities to serve over 80 countries. Strategically, Europastry is heavily invested in R&D, with over 22% of sales coming from products launched in the last three years. The group manages a complex international supply chain, with 56% of revenues generated outside Spain, notably in the United States. Its operations are increasingly focused on sustainability, aiming for carbon-neutral production lines and high renewable energy usage.