Aryzta set to acquire US bread firm Pitapan

Irish-Swiss bakery giant Aryzta is set to further expand its US operations by acquiring flatbread specialist Pitapan in what is widely being viewed as a modest bolt-on buy.

While the Cuisine de France owner has not commented on the transaction, it is understood a deal is in the offing. It would be Aryzta’s first foray into the flatbread market in North America.

What is being seen as significant is Aryzta upping its capacity, in the US, via acquisition rather than build, and the suggestion Pitapan has a steady stream of new business lined up. The Chicago company employs around 100 people and has recently built a 100,000sq ft facility, tripling its production capacity.

According to Goodbody Stockbrokers’ food analyst, Liam Igoe: “The acquisition, if confirmed, would be consistent with Aryzta’s strategy of in-filling required new capacity through acquisition in some instances rather than building from scratch. The key advantage is that new production can be brought on stream quicker.”

Goodbody has estimated the acquisition price could be over $50m (€37m); but other industry sources have suggested such a call would be well off the mark. The proposed deal is a further indication of Aryzta’s willingness to further expand its portfolio, having acquired UK breadmaker Honeytop for £80m (€94.2m) two years ago.

Aryzta’s shares were up by nearly 2% at just under €54 yesterday.