Aryzta Buys in U.S.

June 8/Business World -- Swiss-Irish baking group Aryzta has made two U.S. acquisitions for a combined $1.08 billion.

The company said it has bought Fresh Start Bakeries, a supplier of specialty bakery products, and Great Kitchens, a supplier of pizzas and appetizers.

Aryzta sells its freshly baked bread and pastries under brands including Delice de France and Cuisine de France in Europe. Its main U.S. brands are Otis Spunkmeyer and La Brea Bakery.

Fresh Start Bakeries, which includes Pennant Food and Sweet Life, is a global supplier of speciality bakery products with a leading position in the Quick Service Restaurant segment. It operates 29 specialist production facilities across the U.S., Canada, Germany, Poland, Sweden, Spain, Brazil, Australia and New Zealand and has three joint ventures located in North America, Chile and Guatemala.

The combined revenue of the businesses being taken over is $1.03 billion, with associated EBITDA of $133 million. "From a business perspective, we will operate with a greater geographic footprint and with much better channel access to consumers," chief executive Owen Killian said in a statement. "These acquisitions double our manufactured volumes with an additional 30 production locations in nine countries."

The deals are financed through cash, bank facilities, funds raised through debt and Aryzta shares. Aryzta, which has its primary listing in Zurich and a secondary listing in Dublin, said it expected the deals to boost earnings by more than 45 cents per share over 12 months.

From the June 8, 2010, Prepared Foods' Daily News
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