Swiss-Irish bakery group ARYZTA has set up an M&A committee to weigh up offers for the business.

The McDonald’s burger buns supplier saw a shareholder-instigated shake-up of its board at an extraordinary general meeting (EGM) last month and the activist investors’ pick as the company’s new chairman, Urs Jordi, has wasted little time in putting a structure in place to assess the company’s future.

Last month, it was revealed Aryzta was in “advanced discussions” with Elliott Management to acquire the company and, speaking to analysts after the company released its annual financial results yesterday (6 October), Jordi said a sale to the US hedge fund is still one of the options on the table.

He said all the shareholder resolutions were carried at the EGM indicated a “very strong mandate for change”.

Jordi said: “Your board has established a special sub-committee to deal with strategic M&A across the group. It’s very positive to note that since September 16 we continue to receive unsolicited expressions of interest to acquire parts of the Aryzta group. These are in addition to the already known public earlier interests.”

He added: “We will conduct a full assessment of all strategic options available, internal and external, acting always in the best interest of Aryzta and its stakeholders. And this process will continue to evaluate all unsolicited expressions of interest received.”

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Jordi said his vision for Aryzta is for a business that is “less complex, more focused and structured around its core markets and core businesses” but he would not expand on this when asked by an analyst whether it made sense for the company to solely concentrate on its European business.

In answer to another analyst’s question, Jordi said he could not comment on the status of current talks but confirmed “Elliott is one option which on the table”.

He added: “There is another option, which is partial sale of assets. We are exploring both opportunities. This is our obligation from the board. We take there our full fiduciary duty and always with the aim to get the best out for the shareholders.

“Let me repeat that there is a relevant number of additional unsolicited offers to purchase part of the business of Aryzta. And this is beside the Elliott approach.”

Last month’s EGM followed calls by the company’s two largest investors – Cobas Asset Management and Veraison Capital, which together hold about 20% of Ayzta’s shares – for wholesale change at the board level.

For months they had been pressing for a shake-up of the company, namely a simplified business model and strategy, including the sale of additional assets to pay down debt. 

In publishing its results, Aryzta reported the Covid-19 pandemic had had a “material impact” on its performance.

The company saw total revenue decline by 13.4% year-on-year to EUR2.93bn (US$3.44bn) and it recorded an underlying loss of EUR18m compared to a profit of EUR74m this time last year.

EBITDA was down by 33% to EUR260.2m.

Read just-food’s analysis – Aryzta’s options in wake of investor battle