Aryzta buys out Tim Hortons in Canada
Aryzta expects to close a deal to acquire Tim Hortons’ half of the Maidstone bakery facility, in Brantford, Ontario, byend of 2010 at the earliest
Print16 September 2010
A subsidiary of the Irish-led Swiss food producer Aryzta is to buy out its partner, Tim Hortons, in the firms’ joint Canadian bakery venture.
Iaws Group Limited will acquire Tim Hortons’ 50% half of the Maidstone bakery facility, based in Brantford, Ontario, for €349 million.
The 40,000 sq ft bakery currently exclusively provides freshly baked goods for the Tim Hortons’ network under a contractual arrangement which extends to 2016, or 2017 if Tim Hortons so opt.
Aryzta, which includes Cuisine de France and La Lea among its brands portfolio, expects to close the deal by the end of 2010 at the earliest. After this time, the group has said it will fully consolidate operations at Maidstone, which it claims are currently only running at approximately 55% of potential capacity.
The company added that the buyout would allow it to extend Maidstone’s customer base to other operators in the quick service food industry, including Fresh Start Bakeries.
Aryzta bought Fresh Start Bakeries for $900 million and the pizza supplier Great Kitchens for $180 million in June – partly funding these takeovers through a $120 million share placing.
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