Schwan: sells EU pizza business to Oetker and Freiberger

Minneapolis / MN. (div) The Schwan Food Company agreed to sell its European frozen-pizza businesses to Dr. Oetker UK Ltd. and Freiberger Group. Along with Schwan´s businesses in 15 European countries, the «Chicago Town» trademark and licences for the «Freschetta» and «Tony´s» trademarks were taken over after the Minneapolis-based company said it was planning to focus more on its North American operations.

Dr. Oetker UK Ltd. is a subsidiary of German Oetker Group. With more than 22’000 employees the Bielefeld-based group is one of the largest family-owned companies in Germany. Oetker´s Food Division comprises various branded food companies as well as other companies which operate in the institutional and bulk consumer segments. Dr. Oetker GmbH manages the Dr. Oetker affiliates, which are located throughout Europe as well as overseas. The bulk consumer business of Dr. Oetker centres on bakeries, patisseries, restaurants and canteens. Oetker is one of Europe´s largest frozen pizza manufacturers.

The Berlin-based Freiberger Lebensmittel GmbH + Co. Produktions- und Vertriebs KG is Europe´s top supplier of individual products made from «dough with stuff on it». Since 1998 Freiberger is a wholly owned subsidiary of German Südzucker AG.

Dr. Oetker is acquiring Schwan´s pizza-production facility in Leyland (GB) along with the «Chicago Town» frozen-food brand. The Lancashire-based food factory employs 300 people. Schwan is also allowing Dr. Oetker to sell the «Freschetta» and «Tony´s» brands in Europe. Freiberger is acquiring Schwan´s Osterweddingen (DE) plant near Magdeburg and its private-label business and will also produce branded pizzas and snacks for Dr. Oetker for sale across Europe. The deal is expected to be finalized by year end. Schwan will continue to own and operate its food production facility in northern France.

According to British newspapers, the UK frozen pizza market is worth 364,8 million GBP; growing at a rate of 7,7 percent every year. Oetker´s flagship brand «Pizza Ristorante» is growing at 13 percent year on year. The company´s brands are worth 130 million GBP.