CVC, Cinven among bidders for Italian dessert ingredients maker IRCA, say sources

By Elvira Pollina and Amy-Jo Crowley

MILAN/LONDON, June 1 (Reuters) - Private equity funds CVC and Cinven are among initial bidders for Italian dessert ingredients maker IRCA, two sources familiar with the matter said.

A third person said PAI Partners also placed a bid.

The potential deal is likely to act as a gauge of investor appetite for larger buyouts at a time of market volatility driven by the Middle East crisis, with bankers citing consumer-focused businesses as among the most resilient segments.

• The sale could fetch between 2.5 billion and 3 billion euros ($2.7 billion–$3.2 billion), one of the sources and a third person told Reuters.

• Preliminary bids for IRCA were filed last week, the people said, speaking on condition of anonymity because the talks are private.

• Advent acquired IRCA in 2022 from Carlyle in a deal that valued the group at around 1 billion euros, sources said at the time.

• Advent, CVC, Cinven and PAI Partners declined to comment. IRCA was not immediately available for comment.

• Founded in 1919, IRCA employs over 2,200 people and operates 19 production facilities across Europe, the United States and Vietnam, supplying customers in more than 100 countries.

• It supplies chocolate, creams and other semi-finished food ingredients to professional customers worldwide, particularly in the pastry and ice-cream sectors.

(Reporting by Elvira Pollina and Amy Jo Crowley, additional reporting by Elisa Anzolin; Editing by Anousha Sakoui and Susan Fenton)