Bakery group Fazer has reached an agreement to acquire Lantmännen Färskbröd, the fresh bread unit of farmer-owned Swedish cooperative Lantmännen, for an undisclosed sum.

Following completion of the acquisition Fazer will become the second largest player by sales in the Swedish bread market.

"In addition to a broader product line, we will obtain a series of synergies, primarily in distribution, thanks to both companies' strong positions. We can make the most of the Lantmännen Färskbröd business potential, and give the Skogaholm brand and the other bread brands the best possible future prospects," Fazer's CEO Karste Slotte commented.

The deal is subject to regulatory approval and is expected to close later this month.

Lantmännen said that the disposal would allow it to focus on the frozen bakery sector, where it hopes to grow its business through acquisitive activity.

"We want to build Lantmännen Unibake's business and consolidate the frozen bread sector through acquisition," a spokesperson for the company told just-food today (15 September). "To do this, we must be a strong, focused company."

"The Swedish fresh bread business is not in our key investment area, so Lantmännen has decided to sell the business in Sweden," said Per Strömberg, Lantmännen president and CEO in a statement.