M.Dias Branco: announces acquisition of Estrela

Eusebio / BR. (mdb) Brazilian M.Dias Branco S.A., a food sector company, leader in the sale and production of cookies, crackers and pasta, with operations in the production and sale of flour, bran, margarine and vegetable shortening, informs the market and society that on December 23, 2011 it acquired all the shares of the capital stock of J. Brandao Comercio e Industria LTDA and Pelagio Participacoes S.A., a company that holds all the shares of Pelagio Oliveira S.A. Said companies operate under the assumed name Estrela and sell cookies, crackers, pasta and snacks in the country´s North and Northeast regions. Estrela began its activities in 1946 as a small bakery in the city of Fortaleza, Ceara, and, after years of development and growth, it has become a food player with regional operations, two industrial units located in the municipality of Maracanau, Ceara, and net revenue of 190,6 million Brazilian Real (BRL) in 2010. Estrela´s current annual production capacity is 87’600 tonnes of cookies and crackers, 51’600 tonnes of pasta and 7’000 tonnes of snacks and cakes. As a result of this acquisition, M.Dias´ leading market share in Brazil will grow from 24,1 to 25,3 percent in the cookies and crackers segment and from 24,5 to 25,2 percent in the pasta segment according to AC Nielsen data for September and October 2011. This transaction is in line with the Company´s strategy of actively participating in the consolidation of the sector, expanding its national leadership in the cookies, crackers and pasta segments, in addition to adding value due to efficiency gains in the Company´s crushing units and vegetable shortening plant, strengthening its operations in the North and Northeast regions of Brazil.