Aryzta is to close two production sites in Germany, while expanding its French distribution business through the acquisition of Frigegro.
In a statement, the Swiss bakery group said the closure of the Gerolzhofen and Nordhausen facilities aims to “create a more competitive footprint aligning production with current and expected market supply/demand”.
Production will now be consolidated at Eisleben, Aryzta's largest and third German bakery facility, which houses five plants and 23 production lines making rolls, baguettes, pretzels, doughnuts and croissants.
As part of the plan, the group will also “simplify” the German product range by “exiting lower-volume and structurally less profitable products and lines”.
The restructuring follows a review announced in August after a difficult first half for the group.
At the time, Aryzta said Germany was the “most challenged market” due to price-sensitivity, fragile spending and excess bakery capacity.
At Nordhausen, the company manufactures rolls, ciabatta, baguettes and Berliner pastries. Gerolzhofen produces croissants, sweet pastries, savoury snacks and cookies.
The group's German operations supply retail, foodservice and quick-service restaurant customers.
Aryzta chairman and interim CEO Urs Jordi said: “Consolidating production at Eisleben and simplifying our product portfolio will make our German operations more efficient and bring profitability closer to the levels achieved in our other European bakery businesses.”
The publicly listed baker employs around 2,000 people in Germany.
Without specifying the number of jobs that will be impacted, the group said it will manage the process “responsibly and in accordance with all its obligations”.
The changes could reduce German revenue by around €35m ($39.2m) to €40m during implementation, which will happen “mainly in 2026 and 2027”. However, Aryzta expects growth in “other markets and channels” to somewhat offset the impact.
Alongside the German consolidation, Aryzta said its French Coup de Pates business has acquired 100% of Frigegro, a frozen-products distributor in the Limoges region.
Frigegro has been an independent distributor of Aryzta, Coup de Pates and La Carte d’Hubert products in the area since 1994, according to the statement.
The French government’s business registry data shows that the company, founded in 1989, had 20 to 49 employees in 2024.
The deal is Aryzta’s second bolt-on acquisition in France this year, following the purchase of Société Européenne des Beurres in June, a deal that was also struck through Coup de Pates.
Together, the acquisitions are expected to add around €35m to €40m in annualised revenue.
Jordi added that the “acquisition in France demonstrates our disciplined approach to capital allocation, by investing selectively in attractive products, geographies and channels. This is consistent with our focus on premium bakery, foodservice and QSR growth, particularly outside Germany”.
In the first half of the year, organic revenues for the Aryzta group fell 2.7% to €1.06bn.
Group EBITDA dropped 7% to €139.9m, with the margin decreasing 70 basis points to 13.2%, while net profit retreated 3.9% to €47.2m and diluted EPS fell 1.1% to €1.82.
Aryzta added the measures being taken in Germany will "materially improve" the margins it generates in Germany and will contribute around 60-80 basis points to the group EBITDA margin.
For the full 2026 financial year, Aryzta expects to deliver around €300m in EBITDA and €100m in free cash flow before one-time costs.
