Aryzta buys bakery firm for €280m
The Zurich- and Dublin-based group said the deal remains consistent with its policy of targeting acquisitions “which add new geographies, customers, channels, and product capability”.
It said the deal will “greatly enhance” its channel diversification and product capability in Europe, and make it one of the continent’s leading speciality bakery partner manufacturers for established retailers.
“The acquisition enhances the defensive characteristics of the group’s business model in Europe as Aryzta will now manufacture an enhanced range of bakery products to meet consumer tastes across all channels,” management said yesterday.
Klemme generated annual revenues of €229m last year and Aryzta’s ownership of the business will make the group a leading player in the growing German in-store bakery sector.
Of the overall final consideration — which Aryzta will fund from its existing financial resources — €10m will be deferred.
Aryzta chief executive Owen Killian called Klemme “a very well invested bakery asset, with an enviable reputation for innovation and production excellence”.
“This acquisition will transform Aryzta’s capability in Europe and enhance our strategic positioning with greater access and relevance to large retail and food service customers. The timing is important in the context of the Aryzta transformation initiative programme and the rollout of SAP in Europe,” he added.
Liam Igoe of Goodbody Stockbrokers said: “Overall, the acquisition looks like a good fit for Aryzta. Its product range and technology is similar to what the group currently employs. Its main purpose is to give Aryzta bigger exposure to European supermarket chains, which is currently negligible outside of Ireland, the UK, and Switzerland.”
Aryzta’s financial year runs to the end of July. The company said the impact of this deal on the rest of its fiscal year will be “modest”. The transaction is still subject to clearance from Germany’s Federal Cartel Office, with a completion date unknown.
Despite news of the deal, Aryzta’s shares were down 1.75% yesterday at €42.69.
