IAWS spends €449m on US baked goods company

Food company IAWS has announced the signing of an agreement to acquire US specialty baked goods business Otis Spunkmeyer Holdings from private equity firm Code Hennessy & Simmons and the management team of Otis Spunkmeyer.

Based on a closing enterprise value of $561m (€449m), the consideration for the equity is circa $340m (€272m) with an additional payment to stock and option holders contingent on the achievement of agreed performance milestones, up to a maximum of $25m (€20m). The acquisition is being funded by additional debt facilities.