Switzerland's Barry Callebaut, the world's largest chocolate manufacturer, today said that it would buy the cocoa ingredients division of Singapore-based Petra Foods, for $950 million in cash.

The acquisition will give the Zurich-based company seven factories in countries including Indonesia, Malaysia, Thailand,  France, Germany, Brazil and Mexico, with combined annual grinding capacity of 405,000 metric tons.

The deal, which is expected to close in mid-2013, will make Barry Callebaut the world's largest cocoa processor.

Cocoa Ingredients Division is one of the world's major manufacturers and suppliers of cocoa ingredients, as well as a leading manufacturer in branded consumer confectionery products.

Petra Foods entered the cocoa ingredients business in 1988, and is now the largest cocoa ingredients supplier in Asia.

The business has about 1,700 employees, customers in more than 60 countries and sales of around $1.3 billion (CHF 1.1 billion) in 2011.

It provides highly customised premium cocoa ingredients like cocoa liquor, cocoa butter, cocoa powder to international food and beverage companies and its products are marketed globally under the Delfi brand and in Europe under the Nord Cacao brand.

The deal also includes a long-term agreement with Petra Foods' branded consumer division to supply it with cocoa products covering 75 per cent of its total needs.

Barry Callebaut said that the acquisition will strengthen its cocoa position, which is crucial for supporting its industrial chocolate growth and expanding its offering to industrial chocolate, outsourcing and gourmet customers.

In addition, the acquisition will boost Barry Callebaut's sales volume in the fast growing emerging markets of Asia and Latin America by 65 per cent.

According to Barry Callebaut, the markets for cocoa powder are growing by 2-5 per cent annually,  mainly driven by emerging markets and increasing demand for a broad range of applications, such as cocoa-based beverages, compounds, fillings, bakery products and ice cream.

Andreas Jacobs, chairman of Barry Callebaut, said, ''This acquisition is an excellent strategic fit that will support our future global growth. The integration of Petra Foods' Cocoa Ingredients Division into our Group is expected to strengthen Barry Callebaut's earnings per share.

This significant transaction will allow us to continue our expansion strategy in all regions and capture additional opportunities through outsourcing and partnership agreements as well as in Gourmet.''

With annual sales of about $5.2 billion, Barry Callebaut is the world's leading manufacturer of high-quality cocoa and chocolate.

It is present in 30 countries, operates around 45 production facilities and employs around 6,000 people.

The company serves the entire food industry focusing on industrial food manufacturers, artisans and professional users of chocolate such as chocolatiers, pastry chefs or bakers.

Barry Callebaut was formed by German immigrant Klaus Johann Jacobs through the 1996 merger of Belgian chocolate producer Callebaut and French company Cacao Barry.

Its customers include multinational and national branded consumer goods manufacturers, artisanal users of chocolate, and food retailers, for whom it makes private label as well as branded products.

The company has grown through strategic acquisitions, including the 1999 purchase of Swiss chocolate maker Carma, the 2002 acquisition Germany's Stollwerck, Dutch-Belgian company Luijckx Chocoladen and Sweden's AM Foods amba in 2004, US-based FPI Food Processing International in 2007,  and Malaysia's KL-Kepong Cocoa Products in 2008.