Private equity firms including CVC Capital Partners and Cinven are among the initial bidders for Italian dessert ingredients manufacturer IRCA, according to a report by Reuters citing unnamed people familiar with the process.
A third source said PAI Partners has also submitted a bid, as the auction for the business moves into its early stages.
The sale process is being closely watched as a barometer of investor demand for large buyouts in a volatile macroeconomic environment, with advisers noting that consumer-linked businesses continue to attract interest due to their relatively defensive characteristics.
Preliminary offers for IRCA were submitted last week, the sources said, speaking on condition of anonymity because the discussions are private. The company is expected to be valued in the range of €2.5bn to €3bn ($2.7bn–$3.2bn), according to two of the sources.
IRCA is currently owned by Advent International, which acquired the business in 2022 from The Carlyle Group in a transaction that valued the company at around €1bn.
All of the named private equity firms, along with IRCA itself, reportedly declined to comment.
Founded in 1919, IRCA employs more than 2,200 people and operates 19 production sites across Europe, the United States, and Vietnam. The company supplies chocolate, creams and other semi-finished ingredients to professional customers in over 100 countries, with a strong focus on pastry and gelato markets.
