Aryzta to acquire leading German bakery

Aryzta will acquire leading German bakery, Klemme AG, subject to clearance from the German Federal Cartel Office
Aryzta will acquire leading German bakery, Klemme AG, subject to clearance from the German Federal Cartel Office

Aryzta has said its acquisition of Germany bakery, Klemme AG, will allow it to "substantially rebalance" its "historical under representation within European large retail"



21 February 2013

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Food group Aryzta – which includes Cuisine de France among its portfolio of brands – has announced the acquisition of Klemme AG, a leading bakery in Germany. 

Klemme, established in 1991, operates seven bakeries with multiproduct manufacturing capabilities. With approximately 1,400 employees, Klemme’s food range of 2,500 bakery items includes an assortment of bread rolls and ciabattas, croissants, sweet and savoury pastries, doughnuts and pretzels.

Aryzta has said the acquisition is consistent with its policy of targeting acquisitions which add new geographies, customers, channels and product capability. On completion, the group will become a leading bakery player in the growing German in-store bakery sector and a leading partner manufacturer for well-established European retailers in the specialty bakery sector. 

The company added that the acquisition will substantially rebalance Aryzta’s historical under representation within European large retail and further position the company for future growth opportunities. It will also allow the group to refocus its strategy in Europe by growing market share in all consumer channels, with an enhanced range of bakery products to meet consumer tastes.

Klemme’s revenue was €229m for the financial period ending 31 December 2012. The deal consideration is €280m, of which €10m is deferred, and will be funded with existing financial resources. Klemme’s margins are comparable to the existing Aryzta Food Group’s margins and the acquisition is expected to provide earnings accretion of about 15c in a full year. 

The transaction is subject to clearance from the German Federal Cartel Office and as such the financial completion date is unknown. The impact in the remaining part of the current financial year to July 2013 is expected to be modest.

Aryzta was first formed when IAWS Group plc merged with Hiestand Holding AG in August 2008. Cuisine de France was acquired by IAWS Group plc in 1998.

Aryzta’s latest results for the period ended 31 October 2012, show that total food revenue grew by 7.9% in the first financial quarter to €747.5m. This growth consists of underlying growth of 0.9%, which the company attributes to overall steady volumes and the lack of further price increases over the prior year, acquisition related support of 1.3% and favourable currency movements of 5.7%.



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