Swedish health foods supplier Midsona AB (Midsona) has continued its recent acquisitions of European organic brands with the announcement of an agreement in early May whereby Midsona will acquire 100 percent of the shares of German organic food pioneer Davert GmbH for approximately EUR48.5 million (SEK511 million). Midsona purchased leading Danish organic supplier Urtekram in 2015 and top Swedish organic food brands Kung Markatta and Helios in 2016. "Following Midsona’s successful consolidation within the Nordic market for organic dry products, the company has a clear strategy to become a leader in Europe. The acquisition of Davert is an important step in this direction," Midsona said in a statement.
"As one of the leaders in the German market, Davert provides Midsona with a strong position in the largest market for organic food in Europe. The acquisition strengthens Midsona’s presence in the attractive organic food segment, and Davert’s premium brand and product portfolio are highly complementary to Midsona’s existing organic brands.
"Davert will continue to operate as a separate entity, under the leadership of its managing director Erk Schuchhardt and his management team."
Midsona, which is listed on the Stockholm NASDAQ mid-cap exchange, said that Davert, founded in 1984 by Rainer Welke, is a pioneer in the organic food industry in Germany.
"The company is a leading manufacturer and distributor of organic dry packaged food, offering products under its Davert brand as well as private label products. Davert’s portfolio includes a broad range of organic products in categories such as convenience products, snacks, superfoods and nuts, breakfast cereals, rice, and pulses," the statement said.
Davert’s products are sold through various channels including grocery stores, drug stores, health food stores as well as to the food services industry and in recent years has launched a new brand design, broadened its product portfolio and extended its distribution.
The company also moved into a new, purpose-built production facility and significant investments were made in state-of-the-art manufacturing lines and an automated warehouse.
Davert's sales in 2017 were EUR64 million (SEK616 million). Davert has approximately 150 employees based at its facility in Ascheberg, North Rhine-Westphalia, Germany.
Midsona had annual sales of about SEK2.173 billion in 2017 (EUR211 million) and said it holds a strong position in the Nordic market with its strong brands within health foods, personal care, and hygiene.
"Midsona also sells some licensed internationally established brands. Our products are sold through grocery and convenience stores, pharmacies, health stores and internet. Midsona’s priority trademarks are Dalblads, Friggs, Helios, Kung Markatta, Miwana, Naturdiet, Eskimo-3, and Urtekram," Midsona said.
“Building on the successful expansion of our organic products business throughout the Nordic region, this transaction with Davert represents a logical next step and bridgehead into Europe. We are impressed by the company’s high-quality products, its best-in-class manufacturing capabilities and the accomplishments of its team."
"Davert’s product portfolio, market position, multi-channel customer base and its significant competencies across the supply chain, from sourcing to production to marketing, are an ideal strategic fit for Midsona. The outlook for the German organic market is strong, and we believe that Davert is well positioned. We look forward to a bright future together with the Davert team," said Peter Åsberg, CEO of Midsona.
Erk Schuchhardt, CEO of Davert, said: "We are delighted to be joining forces with Midsona, which I view as the perfect partner for Davert. The values and cultures of our companies are well aligned with strong shared beliefs about the importance of the environment, the critical need for sustainable food production and the benefits of organic food. We expect this combination to deliver meaningful benefits to our customers, business partners, consumers, and employees."
Midsona anticipates synergies in areas including production, cross-selling and procurement, with initial synergies expected to be realized during 2019.