SWITZERLAND: Aryzta acquires North American bakeries
Aryzta eyes North American growth as sales in the region slow
Switzerland-based bakery group Aryzta has set its sights on expansion in North America with the acquisition of two bakeries in the region - Pineridge Bakery in Canada and Cloverhill Bakery in the US.
The company said it had agreed to pay a combined EUR730m (US$1.01bn), with further post-acquisition investments of EUR70m anticipated. Aryzta said its deals would "significantly" boost its North American bakery capabilities, customer access and product portfolio.
The acquisitions are expected to generate double-digit earnings per share growth in fiscal 2015, the first full year the businesses will be included in Aryzta's results, the company said.
The baker announced the news as it reported its first-half results for the six months to 31 December.
During the period, Aryzta booked a 3.5% drop in sales from its North American businesses. The group's "rest of world" units also saw sales decline - dropping 9.9%. However, this was more than offset by a 19.1% increase in European sales.
Overall, food sales were up 5.7%. EBITA from Aryzta's food businesses increased 5.6% to EUR194.2m, while underlying net profit gained 6.5% to EUR129.4m.
However Origin, the group's agribusiness joint venture, weighed on the group result. As a result, group sales were up 1.7% to EUR2.10bn, group EBITA increased 6.4% to EUR198.3m and underlying fully diluted net profit increased 4.7% to EUR135.6m.
The company reiterated its guidance for double-digit earnings per share growth in fiscal 2014.
Click here to view the full release from Aryzta.
Oils & Fats in Ireland industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descr...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global bakery & cereals market during March 2014....
Plimsoll’s UK Bread Manufacturers (UK) analysis is the most definitive and accurate study of the UK Bread Manufacturers (UK) sector in 2013. The report is split into two sections and uses both a writ...
Plimsoll’s UK Food & Drink - Northern Ireland (UK) analysis is the most definitive and accurate study of the UK Food & Drink - Northern Ireland (UK) sector in 2013. The report is split into two secti...
The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global savory snacks market during October 2014....
The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global bakery & cereals market during October 2014....
- Focus: Danone CEO Faber puts stamp on business
- Cleaning up Tesco will have mixed supplier impact
- General Mills US "priority" categories gain share
- The just-food interview: Doux CEO Arnaud Marion
- Interview part 2: BRF CFO Augusto Ribeiro
- General Mills outlines "aggressive" NPD drive
- Coles supplier payments broke competition law
- Kraft to reappraise business, says new CEO Cahill
- General Mills earnings drop one-third
- PepsiCo opens snacks plant in Saudi Arabia