BRAZIL – Switzerland-based international baking company Aryzta has agreed to divest its Brazil businesses to Grupo Bimbo in its latest move to simplify its operations.
“The successful sale of the Brazil businesses is a further positive step in the delivery of our strategy to rebuild Aryzta’s leadership in bakery in Europe and Asia,” said Aryzta chairman Urs Jordi, who has also been serving as the company’s interim CEO since the end of last year.
“Aryzta’s disposal programme since September has exceeded expectations in all regards and accelerates the group’s journey to financial stability.”
As part of the announcement, the bakery group reiterated its commitment to the Europe and Asia markets, following the sale of its North American business to an affiliate of Lindsay Goldberg earlier this year.
Aryzta also recently sold sandwich production assets in Switzerland to Bell Food Group subsidiary, Hilcona.
The Zurich- listed firm has also disposed of its remaining stake in French frozen-food retailer Picard, along with its take-and-bake pizza business in North America to another US PE firm Brynwood Partners.
“Our focus will now centre on delivery of sustainable organic growth and achieving industry profitability and efficiency levels through our multi-local business strategy,” added Jordi.
The transaction is expected to be completed by the end of the second quarter of Aryzta’s financial year 2022 and is subject to customary closing conditions.
The company has also announced that it has agreed a new €500 million revolving credit facility with three banks.
As Arytza exists the international scene, its peer Grupo Bimbo has been expanding in new territories in search for growth.
Bimbo snapped up US-based gluten-free cookies maker Emmy’s Organics in July and earlier bought baked-goods maker Modern Foods in India.
Harlan Bakeries acquires AmeriQual
Meanwhile baked goods manufacturer Harlan Bakeries has agreed to acquire Indiana-based food company AmeriQual, for an undisclosed sum.
AmeriQual produces, packages and distributes shelf-stable, refrigerated, or frozen foods, sauces, and condiments for a number of US institutions, including federal, state, and local government agencies.
Harlan Bakeries President Hugh Harlan said: “I am excited for the opportunity to work with all of our employees to vertically integrate both businesses and to ensure continued growth and success for both companies.”
Turning Rock Partners provided structured equity financing support for the acquisition, while existing shareholders and management also participated in the new round of capital.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
