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European dry grocery manufacturers Panzani Group and Cerealis have entered into exclusive negotiations to combine their operations, a proposed transaction set to create an independent European food enterprise generating approximately €1 billion in annual turnover.
The combination values the enlarged business at an enterprise value of around €1.8 billion. Supported by Cerealis' founding families, Belgian investment firm Sofina, and private equity firm CVC Capital Partners, the transaction unites two established dry grocery platforms to build scale across dry pasta, ambient sauces, breakfast cereals, and milled grain products across Western and Central Europe.
The transaction remains subject to standard information and consultation procedures with relevant employee representative bodies in France and Portugal, alongside customary regulatory clearances.
Enterprise Scale
The planned merger brings together complementary product categories and geographic networks across seven European territories, employing nearly 1,800 people:
Panzani Group: Headquartered in Lyon, France, the company generated €620 million in revenue in 2025. Its primary footprint spans France, the Netherlands, and Central Europe, with core product strengths in dry pasta, quick-cook pasta, couscous, and ambient pasta sauces.
Cerealis: Headquartered in Porto, Portugal, the manufacturer recorded €400 million in revenue in 2025. It maintains commercial and processing footprints across Portugal, Spain, the Czech Republic, and Poland, operating across pasta, breakfast cereals, cereal bars, biscuits, and industrial and retail flour.
By combining Panzani's commercial density in Western Europe with Cerealis' manufacturing network across the Iberian Peninsula and Central and Eastern Europe, the enlarged group aims to cross-pollinate branded products into adjacent territories while expanding contract private-label manufacturing bandwidth.
"Panzani and Cerealis share the same entrepreneurial culture, a long-term commitment to their brands and markets, and a common ambition for growth," said Pedro Moreira da Silva, Executive Vice-Chairman of Cerealis. "This transaction builds on highly complementary product ranges, technologies, and expertise. It will strengthen our capacity for innovation and create new growth opportunities for both companies."
Structure and Operations
Under the contemplated structure, both businesses will maintain their existing headquarters in Lyon and Porto, functioning under a decentralised operational framework designed to preserve local brand heritage:
Executive Leadership: Pedro Moreira da Silva will assume overall executive leadership of the combined group, coordinating cross-border strategy, supply chain synergies, and joint commercial initiatives.
Western and Central Europe: Panzani Chief Executive Officer Albert Mathieu will continue to lead the French operating company while taking executive responsibility for the combined entity's Central European commercial divisions.
Iberia and Private Label: Cerealis Chief Executive Officer Paula Meireles will direct operations across the Iberian Peninsula alongside the group's international private-label manufacturing accounts.
The shareholding structure will align the companies' existing investors. The shareholder base will comprise Cerealis' founding families, the Moreira da Silva and Silva Domingues families, alongside Sofina and CVC Capital Partners. CVC, which acquired Panzani in 2021, will retain a minority equity interest, with all four principal shareholder groups holding representation on the combined board of directors.
Harold Boël, Chief Executive Officer of Sofina, noted that backing multigenerational family-owned enterprises and accelerating their pan-European scale remains central to the investment firm's long-term deployment strategy.
European Dry Grocery
The merger negotiations arrive amid active structural consolidation within Europe’s staple food processing and ambient grocery categories.
Rising raw material price volatility, elevated industrial energy tariffs, and persistent retailer price negotiations have increased the operational necessity for primary producers to build scale. Concentrating procurement, milling infrastructure, and automated packaging capacity enables manufacturers to protect margins while offering retail grocers reliable volume delivery across both branded and private-label dry goods.
Management confirmed that the enlarged entity will direct future capital expenditure into modernising manufacturing facilities, advancing product formulation, and accelerating branded line extensions to support supply chain resilience across the continent.
Panzani and Cerealis Enter Exclusive Talks to Form €1bn Food Group
October 19, 2026
