Build-up transaction consolidates the Italian natural fruit-based ingredients sector

Imola & Vicenza, Italy, July 16th, 2020 - Agrimola, a European leader in the manufacturing, processing and marketing of chestnuts and transformed fruits, has acquired a majority stake in La Nuova Tradizione Srl, a Montecchio Maggiore (Vicenza) based producer of semi-finished ingredients for ice cream makers, pastry chefs and bakers.

With sales of over €M 2,5 La Nuova Tradizione produces ingredients for two main business units: powders and pastes for ice creams (70%) and jams, candied fruits and flavorings for pastries (30%). In addition to the La Nuova Tradizione brand, the company also operates under three licenses:

• CGI Flavors, dedicated to the production of essential oils and aromas;
• Vergani 1881, a high-quality range of candied fruits, jams and purées;
• Pizzolotto, offering a wide range of high-quality alcoholic aromas.

Led by CEO Luca Sassi and backed by Fondo Agroalimentare Italiano, Agrimola is a pure player in fruit solutions, with nearly €M 40 in sales. It is a key partner for Italian and European supermarket chains, supplying a broad range of fresh, frozen or aseptic, mainly organic fruits, to over 50 international distributor clients for use in marmalades, desserts, ice creams and dairy. Agrimola's excellent competitive position stems from its privileged locations in Emilia-Romagna, Piemonte and Campania, major Italian agricultural regions for sourcing high quality, fresh raw materials, investments in state-of-the-art facilities and a commitment to the highest standards of food safety, manufacturing quality and certifications. 40% of the Group's sales are realized outside of Italy.

Through this transaction, Agrimola plays a key role in the consolidation of the Italian natural fruit-based ingredients sector. The integration of the two companies will strengthen the fruit supply chain for pastry chefs, bakers, and ice cream producers. In addition to synergies for the acquisition of fruits for ice cream and pastry ingredients, new products will be developed.

Luca Sassi, CEO of Agrimola, declared: "The acquisition of La Nuova Tradizione is a major step in Agrimola's development. We are pleased to play a role in the consolidation of the Italian natural fruit-based ingredients sector and create a more resilient and high-quality supply chain to better serve our clients. With the support and expertise of Fondo Agroalimentare Italiano, we will seek to continue our development through organic and external growth opportunities in Italy and abroad."

Francesco Orazi, Director of Fondo Agroalimentare Italiano, declared: "Robust and highly performing under the leadership of Luca Sassi, Agrimola is ideally placed to lead the consolidation of its industry. We have evaluated many M&A opportunities together and are pleased to support Agrimola in acquiring La Nuova Tradizione, a promising first step."