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Europastry considers going public with 40% of its capital to finance its growth
La Vanguardia - June 2007

Barcelona. - The family run business, Europastry, manufacturer of frozen bread and pastries, is seriously considering going public to finance its growth plan. The transaction, which will have to be approved in the coming months by the board of the company belonging to the Gallés family, could be made at the end of this year or at the beginning of 2008, through an increase in share capital, by placing approximately 40% of its shares for sale on the stock market.

"We have spoken to all the business banks and have realized that it is a viable operation", assured Jordi Morral yesterday, Chief Executive Officer of the company, who added: "We haven’t signed with anybody yet, but if we finally decide to go ahead, Santander and Citigroup are the organizations that have the most possibilities of taking the project".

"We are open to all ideas, the most important thing is the growth project of the company", assured Morral. In the present study phase, a positioning of around 40% is anticipated.

Europastry, which operates in the frozen bread and pastry markets with brands such as Fripan and Yaya Maria, and who is also the owner of the bakery chain Molí Vell, is well-used to outstanding growth. In 2000, the sales turnover was of 75 million euros. The turning point came in 2002 when Europastry acquired its main competitor, Frida, reaching a joint turnover of 160 million. In these last five years, the group has practically doubled its volume, as the objective for 2007 is to exceed 300 million, with a gross operating profit of 45 million Euros.

"We are the second European company in production and want to become the leaders", said Morral. According to this approach, going public will not be linked to a takeover, but to "the investments in our own plants". This year the company will invest 35 million in logistics and production.

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