Barilla has settled its dispute with Italian bank Banco Popolare Group over the acquisitions of German bakery firm Kamps and French baker Harry's.

According to a statement by Barilla, the agreement will see the Italian pasta firm buy Banco Popolare's stakes in Kamps and Harry's for EUR434m (US$631.2m).

The deal will also see Barilla buy the stakes that Dutch foundation Stichting Bakery Finance owned in Kamps and Harry's

Under the deal, Barilla will repay two loans to a Banco Popolare bank worth EUR70m and the redemption of a further EUR57m loan.

Banco Popolare will also grant a wholly owned subsidiary of the Barilla family (named GELP) a EUR506m irrevocable credit facility maturing in 2020, which GELP will use to underwrite a corresponding increase in Barilla's share capital.

On conclusion of the agreement, Barilla said it will simplify its company structure.

Barilla and Gafina (a company owned by the Anda Bührle family and a long-time partner of the Barilla family) will hold 85% and 15% respectively of the equity of a common entity that will control Barilla G.e R. Fratelli, Kamps and Harry's.

"We are satisfied that this agreement will allow us to overcome an extremely complex and contentious but most of all damaging phase in the company's development," said Robert Singer, Barilla CEO.

"After taking over full control of Kamps and Harry's we will concentrate our efforts on maximising the potential of the two companies, exploiting where possible all synergies within the group. Furthermore, the agreement will allow us to reduce significantly the financial indebtedness of the group."