ARYZTA acquires German baking company Klemme

Swiss food company ARYZTA has acquired Klemme, a German baking company that operates seven bakeries with multiproduct manufacturing capabilities, for €280m.

The latest acquisition will significantly transform ARYZTA’s manufacturing footprint in Europe, while boosting its channel diversification and product capability in the region.

The company plans to fund the deal with existing financial resources.

Klemme, established in 1991, has about 1,400 employees, and offers a range of 2,500 bakery items, including bread rolls and ciabattas, croissants, sweet and savoury pastries, doughnuts and pretzels.

For the financial period ending 31 December 2012, Klemme posted revenues of €229m.

The transaction is consistent with ARYZTA’s strategy to target acquisitions which add new geographies, customers, channels and product capability.

Following the acquisition, ARYZTA will become a leading bakery player in the growing German in-store bakery segment and a leading partner manufacturer for European retailers in the speciality bakery sector.

ARYZTA chief executive officer Owen Killian said that Klemme has a reputation for innovation and production excellence.

"This acquisition will transform ARYZTA’s capability in Europe and enhance our strategic positioning with greater access and relevance to large retail and food service customers," Killian added.

According to ARYZTA, Klemme’s margins are comparable to the existing ARYZTA Food Group’s margins and the acquisition is expected to provide earnings accretion of about 15% in a full year.

The new acquisition is subject to clearance from the German Federal Cartel Office.

ARYZTA is a global food business with operations in North America, South America, Europe, Asia, Australia and New Zealand.