De Cecco snaps up Italian peer RossoGargano

Summary

Italian food major De Cecco, best known for its pasta, acquired full ownership of tomato-products supplier RossoGargano for an undisclosed sum in a deal expected to close next month, aiming to strengthen production and improve margins by directly controlling every stage from growing to marketing as it targets €1 billion in revenue by 2027.

Market Impact

The vertical integration acquisition gives family-owned De Cecco direct control over tomato product sourcing—a segment where it already operates—reducing supply chain dependency and supporting margin improvement. RossoGargano, based in Foggia in southern Italy, produces canned tomatoes, purées, and sauces that complement De Cecco's pasta, gnocchi, and rice range. De Cecco generated an estimated €650 million turnover in 2025 with Italy accounting for 42% of sales, and the company projects revenue reaching €740 million in 2026 including RossoGargano's contribution, advancing toward its €1 billion target by 2027. The deal, advised by Intesa Sanpaolo, reflects consolidation among Italian food producers pursuing scale and supply chain control.

Why It Matters

De Cecco's vertical integration into tomato products illustrates how family-owned food majors pursue supply chain control and margin improvement through bolt-on acquisitions to accelerate toward ambitious revenue targets.

Key Points

• De Cecco acquired full ownership of tomato-products supplier RossoGargano for an undisclosed sum, with the deal expected to close next month and advised by Intesa Sanpaolo
• RossoGargano, based in Foggia in southern Italy, produces canned tomatoes, purées, and sauces that complement De Cecco's pasta, gnocchi, and rice range
• De Cecco chairman said the deal strengthens production and margins and allows the company to directly control every stage from growing to marketing
• Family-owned De Cecco generated an estimated €650 million turnover in 2025 with Italy at 42% of sales; it projects €740 million revenue in 2026 including RossoGargano and targets €1 billion by 2027

Key Entities

Evidence

Italy-based food major De Cecco has bought tomato-products supplier RossoGargano. The deal, struck for an undisclosed sum, is expected to close next month.

Supports: Confirms the acquisition and expected closing timeline

The acquisition allows us to directly control every stage of the process, from growing to marketing.

Supports: Documents the vertical integration rationale from De Cecco's chairman

According to Forbes, De Cecco estimates its revenue will reach €740m in 2026, including a contribution from RossoGargano. The group has a target of €1bn in 2027.

Supports: Grounds the revenue projections and the €1 billion 2027 target