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Italy: Barilla about to take a share in Petti?
According to the Italian economic press in early December, based on indiscretions from financial and industrial sources close to the issue, Parma-based food giant Barilla is looking into opportunities for diversifying its operations through an equity investment in the capital of the company led by Pasquale Petti.
Petti-Italian Food has 100 permanent employees at its Venturina site in Tuscany, employing an additional 200 workers during the harvest season. According to the website milanofinanza.it, the interest of Barilla (EUR 3.48 billion turnover in 2018, +3% against previous year results) for Italian processed tomato products and for the business of Petti Italian Food is linked to the fact that “the group should, by the end of the year, achieve a capital increase of EUR 12 million, necessary in order to restore the solidity of its capital and give new life to development projects of the company. Petti-Italian Food ended last year with a turnover of EUR 60.96 million euros, but a negative EBITDA of EUR 987 000 and a loss of EUR 4.78 million, also linked to marketing investments with a view to market penetration; [the balance sheet also showed] a bank debt of EUR 20.58 million and net assets of EUR 9.4 million.”
The financial reporting site also pointed out that in 2018 Barilla allocated “EUR 236 million (6.8% of the turnover) to product innovation, increased production capacity and improved efficiency and sustainability, launching the expansion of its production facilities in Ames in the United States (pasta) and Rubbiano in Italy (sauces), the largest and most sustainable plant in Europe.” The possibility of an entry into Petti's capital would seem to be part of this strategy.
Source: iltirreno.gelocal.it, milanofinanza.it
