ARYZTA to acquire two North American bakery firms for €730m

Swiss food company ARYZTA is set to strengthen its presence in North America with the acquisition of Pineridge Bakery in Ontario, Canada, and Cloverhill Bakery in the US for €730m.

The two companies had combined sales of €400m in 2013.

ARYZTA stated that the acquired entities will significantly strengthen its baking capabilities, customer access and product portfolio in North America as well as provide double digit EPS accretion in fiscal 2015.

Cloverhill Bakery, based in Chicago, is a family retail bakery that offers snacks including Danish pastries, cinnamon rolls, crumb cakes, cake donuts, honey buns and muffins.

Pineridge Bakery offers fresh and frozen private label and branded baked goods produced by its subsidiaries, Oakrun Farm Bakery and Gourmet Baker.

The company caters to foodservice, in-store bakery, convenience and grocery segments in North America.

Since 2007, Pineridge Bakery has been under the control of private equity firm Swander Pace Capital and has invested around $40m in growth capital to support customer initiatives, expand its product base and drive operating efficiencies.

Swander Pace Capital managing director Andrew Richards said, "This transaction is the culmination of a successful six-plus-year partnership, and it’s a great result for all parties."

ARYZTA announced the acquisition news in its financial results report for the six month period ended 31 January 2014.

During the period, group revenues increased 1.7% to €2.1bn, and EBITA increased 6.4% to €198.3m with a 4.7% increase in net profit to €135.6m.