Private Equity Giants Queue Up for Italian Pastry Supplier IRCA

Private equity heavyweights CVC and Cinven have emerged as initial bidders for the Italian dessert ingredient specialist IRCA, signaling a test for investor appetite in the buyout market. PAI Partners has also joined the fray for the manufacturer, which is currently held by Advent International.

The potential transaction is valued between 2.5 billion and 3 billion euros, marking a significant jump from the 1 billion euro valuation set when Advent acquired the group from Carlyle in 2022. Preliminary bids were submitted last week, according to sources familiar with the private negotiations, who requested anonymity.

Bankers view the sale as a crucial indicator of how resilient consumer-focused businesses remain against a backdrop of market volatility linked to the Middle East crisis. Based in Italy and founded in 1919, IRCA maintains a global footprint with 19 production facilities across Europe, the United States, and Vietnam. The company supplies chocolate, creams, and semi-finished ingredients to professional pastry and ice-cream sectors in over 100 countries. Representatives for Advent, CVC, Cinven, and PAI Partners declined to comment on the ongoing process.