Valeo Foods Group, a European sweets and snacks company, has completed the acquisition of IDC Holding, an independent maker of wafers, biscuits, and confectionary situated in Central and Eastern Europe.
This move is intended to strengthen Valeo's position in a rapidly growing market niche.
The deal was initially announced in September 2024, when Valeo Foods Group stated its plan to acquire IDC Holding.
IDC Holding, founded over a century ago in Slovakia, earns about €200 million in annual revenue and has a diversified portfolio that includes well-known brands including Horalky, Mila, and Lina.
The acquisition will strengthen Valeo's sweet snacking platform and provide a solid foundation for developing operations in Eastern Europe.
Ronald Kers, CEO of Valeo Foods Group, commented: "The acquisition of IDC Holding introduces complementary brands and opens the door to significantly strengthening our position in the Central and Eastern European market and solidifying our leading position with our international retail partners".
He stated, "We are optimistic that our market strategy will deliver profitable growth through improved distribution, more penetration, and a cost-effective supply chain. We anticipate that the combined power of our organisations will generate value for many years to come."
The acquisition is consistent with Valeo's overall aim of becoming a leader in the sweet treats market across Europe. With over 80 brands in its portfolio and revenues over €1.6 billion, Valeo is well-positioned to benefit from IDC Holding's established market presence and product offers.
IDC Holding employs more than 1,150 people and runs three production facilities in Slovakia in addition to other subsidiaries in the Czech Republic, Hungary, and Poland.
It is anticipated that the incorporation of these facilities into Valeo's activities will increase operational effectiveness and broaden the company's presence in the area.
CMI Research: Key Snack Products Market Insights
According to Coherent Market Insights (CMI), the snack products market is expected to exhibit a considerable CAGR between 2024 and 2031, driven by rising demand for packaged and ready food. The market is forecasted to exceed over the forecast period.
The market for snack food products was dominated by North America, with the S. being the main contributor.
Analyst Opinion: Strategic Role in Snack Products Market Growth
According to senior management consultant Yash Doshi, snack products are defined as a portion of food, which is smaller than a regular meal and is consumed between the meals.
Conclusion: Business Takeaways
By acquiring IDC Holding, Valeo Foods Group broadens its market reach and improves the variety of snack products it offers. This calculated action underscores the increasing need for a variety of snack options and the value of acquisitions in bolstering a business's standing in the food sector. Similar chances to diversify and maintain competitiveness in a changing industry should be taken into consideration by other companies.
