Na M. Dias Branco, o M&A do pão congelado

M. Dias Branco's shares rose over 3% today after the company announced it would acquire a 80% stake in Grespan, a frozen bakery products manufacturer. José Marcos Grespan and Marlene Grespan, the founders, will remain in the operation for up to five years to help integrate the businesses. M. Dias Branco also has the option to buy the remaining 20% of the company during this period.

This deal ends a four-year gap without acquisitions for the food company, which owns brands such as Piraquê, Adria, and Vitarella. The transaction value was not disclosed, but the deal is small for M. Dias Branco, as Grespan's revenue (R$ 139 million in 2025) is only 1% of the company's total. The acquisition opens a new growth avenue in wheat-based products, a chain the company already knows well.

M. Dias operates seven mills and is one of the largest manufacturers of cookies and pastries in the country, now offering frozen breads for bakeries, supermarkets, and atacarejos. Founded in 2009, Grespan serves over 1,100 customers, mainly in the Southeast and Central-West regions, and has more than 60 products, with the French bread being a highlight.

The company's model extends beyond manufacturing, providing logistics, equipment, and technical support to its clients. Analysts from Bradesco BBI noted that the acquired products already represent 31.9% of the bakery sector's revenue in the previous year, up from 29.3% in 2020. The market potential is significant. The bakery sector generated R$ 164 billion in Brazil in 2025, although the figure includes a much larger universe than just frozen products.

In a narrower scope, the industrialized bread market generated R$ 4.5 billion in 2024, according to IBGE data compiled by Bradesco. M. Dias aims to start expanding Grespan in São Paulo, leveraging existing business relationships before moving to other regions. Another advantage is the company's superior margins compared to the consolidated average of M. Dias.

However, the expansion will require a different operation, as frozen breads need a refrigerated logistics chain and face established competitors like Marquespan. The acquisition also marks M. Dias Branco's return to M&As after focusing on integrating previously acquired businesses. In 2021, the company bought Latinex, which owns Fit Food, Frontera, and Smart brands.

The following year, it acquired Jasmine, a healthy foods company, and Las Acacias from Uruguay, its first international operation. This move comes at a time when M. Dias Branco is struggling to grow in traditional businesses, recover profitability, and face difficulties such as competition, difficulty passing cost increases, and the greater bargaining power of atacarejos.

At the same time, operating expenses continue to pressure results. In the second quarter, sales volume grew by 4.4% year-over-year, but net revenue fell by 0.9% to R$ 2.7 billion. EBITDA margin dropped from 12.7% to 10.5%. A buy-side manager told Brazil Journal that some of these challenges stem from the maturity of the biscuits and pastries markets, regional competition, and the growing bargaining power of atacarejos, which pressure prices and margins.

For Bradesco, Grespan is a strategically positive acquisition that could serve as a platform for future purchases in a fragmented market, but the bank emphasizes that the transaction is too small to significantly impact results in the short term. Another analyst questioned whether this is the best strategy for a company facing operational difficulties for years.

"The question remains whether it was the best path," the analyst said, seeing the entry into frozen products as interesting but considering the acquisition too small to make a difference in the company's results. M. Dias Branco's share price has fallen 30% over the past twelve months. The company is worth R$ 7 billion on the B3.