Aryzta acquires 49% stake in French food retailer Picard

Swiss-Irish bakery group Aryzta has acquired a 49% stake in French food retailer Picard.

Based in Zurich, Switzerland with operations in North America, South America, Europe, Asia, Australia, and New Zealand, Aryzta said it plans to operate the French group as an associate.

First announcing the acquisition in March this year, the company had said that the deal would cost around €446.6m.

Currently valued at €2.25bn, Picard specialises in producing breads, pies and desserts. It is being speculated that Aryzta intends to internationalise Picard, which currently has a strong presence in France.

During the previous announcement, Aryzta said that it would hold the right to exercise a call option in three to five years, to acquire 100% of Picard.

Picard has around 930 stores and accounts for 20% of the country’s frozen food market. The company has also started expanding internationally with new stores in Belgium, Italy, Sweden and Japan.

Aryzta CEO Owen Killian had said: "The investment in Picard is consistent with Aryzta’s strategy of consumer relevancy through diversifying markets and channel positioning.

"Picard has delivered consistent revenue, EBITDA and market share growth over the past 40 years.

"It offers Aryzta the future potential to acquire a highly successful business to consumer platform focused on premium speciality food, that complements Aryzta’s business to professional platform. Picard is a highly predictable business and an ideal replacement for Aryzta’s Origin holding and allows Aryzta to strategically move up the value chain."