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Portuguese firms Cerealis and Better Foods have agreed to combine their milling activities in a new jointly owned business.
The agreement covers Cerealis Moagens and the milling units of Better Foods – Ceres, Germen, Carneiro Campos and Granel.
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The combined business will be set up as a new company held on a 50/50 basis by the shareholder structures of both groups.
Financial details of the transaction have not been revealed.
On its website, Better Foods Group describes itself as the “largest” Portuguese milling group, producing flours and food ingredients.
Founded in 1919, Cerealis, was acquired in August 2021 by investment companies Tangor Capital and Teak Capital. It manufactures breakfast cereals and cereal bars, pasta, cookies and frozen meals and is also a miller and supplier of flour.
In a joint statement, the companies said the move is intended to “strengthen the competitiveness and industrial capacity of the Portuguese milling sector at a time of rapid transformation in the Iberian market”.
They added: “It also responds to the increasing consolidation of the value chain in Portugal and across the Iberian Peninsula, contributing to the sustainability of the national flour industry and ensuring an efficient, reliable and competitive supply to a sector that is essential to the economy.”
Pedro Moreira da Silva, CEO of Cerealis, said: “The new scale of the main Iberian operators is redefining the competitive environment in which we operate.
“This merger allows us to keep pace with that evolution by enhancing efficiency and strengthening our capacity to invest, innovate and deliver a more robust service.”
Armando Miranda, CEO of Better Foods Group, said: “We believe that this merger will accelerate industrial modernisation and improve our ability to serve the market, benefiting customers, employees and partners.”
The deal is subject to review by Autoridade da Concorrência, the Portuguese competition authority.
Better Foods Group, founded in 2018, includes four milling companies, a deep-frozen food business and two logistics complexes that manage storage and distribution of its products in Portugal and abroad.
Cerealis owns 11 commercial brands, including Nacional, Milaneza and Napolitana. The group employs more than 760 people and processes over 440,000t of cereals a year across four certified production centres, with more than 130 products sold on five continents.
In 2024, Cerealis completed the full takeover of Europasta for an undisclosed amount. Cerealis already held a 58.33% stake in the Czech Republic-based business.