Belgian bakery group Vandemoortele recently secured fresh financing amounting to €100 million, marking a significant step in the company's ambitious expansion and development strategy. Founded in 1899 and headquartered in Ghent, Vandemoortele is a key player in the bakery, margarine, and spreads markets. This new funding injection, obtained through mezzanine finance from prominent investors like Tikehau Capital, Belgian Resilience Fund, PMV, and Welvaartsfonds, aims to strengthen the group's capital structure and accelerate its ongoing merger and acquisition activities. The decision to opt for mezzanine financing or subordinated loans reflects Vandemoortele's strategic approach to diversify its financial base while maintaining flexibility to pursue growth opportunities. This type of funding sits between debt and equity, offering advantages such as less dilution of ownership compared to equity financing and potentially lower cost of capital compared to pure equity.
Over the past eighteen months, Vandemoortele has pursued an aggressive buy-and-build strategy, completing several acquisitions across Europe and the United States. Earlier this year, the group expanded its footprint by acquiring Délifrance, a renowned bakery firm, shortly after purchasing Bunge's European margarine and spreads division and Italy's frozen bakery business Lizzi. These acquisitions have added approximately €1.7 billion to the company's turnover and have broadened its product portfolio significantly. Last year, Vandemoortele further extended its reach by acquiring Italy's Dolciaria Acquaviva and securing a majority stake in New Jersey-based Banneton, marking its deeper involvement in the US market.
These strategic moves are designed to enhance international presence and leverage synergies between businesses in different regions. The newly secured financing will primarily serve two purposes: reinforcing Vandemoortele's capital framework and funding the enhancement of its production capacities. The Ghent-based company seeks to ramp up manufacturing capabilities in order to meet the growing demand triggered by successful acquisitions and evolving consumer preferences. Herman Van Steenstraeten, CFO of Vandemoortele, emphasized the importance of this mezzanine financing in establishing a solid and diversified financial structure. He pointed out that such financial strength is crucial for supporting recent acquisitions and underpinning the company's buy-and-build approach.
Financially, Vandemoortele reported a turnover of €1.98 billion and an operating profit of €256 million in 2024, indicating solid performance despite a challenging market environment. However, the first half of 2025 showed some mixed results; while revenue increased by 10.6% to €1.05 billion bolstered by recent acquisitions, adjusted EBIT decreased by 22.
51%, and attributable group earnings declined by 72.4% compared to the previous year. CEO Yvon Guérin expressed confidence in the medium to long-term outlook, emphasizing that current investments and cost management initiatives would lay the foundation for improved profitability and efficiency. These financial results underline the typical short-term impact of integration costs and restructuring associated with significant acquisitions. Nevertheless, Vandemoortele's management remains focused on innovation, optimizing its product mix, and streamlining operations to maximize future returns.
The company's acquisition strategy carries the promise of transformative growth, as reflected by Guérin's comment on the integration of Bunge's European margarines & spreads business and Délifrance. These transactions are set to broaden Vandemoortele's product offerings and enhance its international standing in key markets. The bakery industry itself is undergoing rapid changes driven by shifting consumer tastes emphasizing convenience, health, and quality. Companies like Vandemoortele, which offer a diversified product range from frozen bakery goods to margarines and spreads, are well-positioned to capture these trends. Additionally, their cross-border acquisitions allow for better economies of scale and knowledge sharing between different markets.
Vandemoortele's approach exemplifies a modern growth formula in the food manufacturing sector. By securing flexible and substantial financing, it can pursue both organic expansion - through innovation and capacity building - and inorganic growth via strategic acquisitions. This dual approach helps mitigate risks while positioning the company to capitalize on emerging market opportunities. Investors' confidence in Vandemoortele is reflected in the caliber of institutions participating in the financing round. Tikehau Capital and the Belgian Resilience Fund, amongst others, signify strong backing from both private and public financial entities.
Their involvement not only provides capital but also offers strategic support that facilitates Vandemoortele's expansion plans. Looking ahead, the company's ambitions include further deepening its presence in the European and global markets, improving product quality, and leveraging digital innovation in production and supply chain management. Combining these efforts with a strengthened capital base should enable Vandemoortele to continue growing despite macroeconomic headwinds such as inflationary pressures and supply chain disruptions. The story of Vandemoortele highlights several broader trends relevant to business leaders and investors interested in the food manufacturing and bakery sectors. It illustrates how companies are increasingly turning to mezzanine and hybrid financing structures to support complex growth strategies.
It shows the importance of acquisitions in scaling operations and diversifying product portfolios efficiently. It also underscores the critical role of balancing short-term financial impacts with long-term strategic benefits. In summary, Vandemoortele's recent financing milestone represents more than just an injection of capital; it is a pivotal moment in the company's evolution toward becoming a global leader in bakery products and spreads. By bolstering its financial resilience and accelerating its strategic expansion, the company is well placed to adapt to evolving market demands and deliver sustainable growth. For stakeholders across the food industry, Vandemoortele's journey offers valuable insights into the power of aligned financial strategy, acquisition-driven growth, and operational excellence in building a resilient and forward-looking business.
.
