Aryzta To Acquire German Bakery Klemme For EUR280m

ARYZTA AG has announced the acquisition of Klemme AG, a leading bakery in Germany. This strategic acquisition will substantially transform ARYZTA’s European manufacturing footprint and greatly enhance its channel diversification and product capability in the region.

Klemme, established in 1991, operates seven highly efficient bakeries with multiproduct manufacturing capabilities. Klemme has approximately 1,400 employees. Its food range (2,500 bakery items) includes an assortment of bread rolls and ciabattas, croissants, sweet and savoury pastries, doughnuts and pretzels.

The acquisition remains consistent with ARYZTA’s policy to target acquisitions which add new geographies, customers, channels and product capability. On completion, ARYZTA will become a leading bakery player in the growing German in-store bakery sector and a leading partner manufacturer for well established European retailers in the specialty bakery sector.

This acquisition will substantially rebalance ARYZTA’s historical under representation within European large retail and further position the company for future growth opportunities. It will strengthen ARYZTA’s capabilities and allow the Group to refocus its strategy in Europe by growing market share in all consumer channels. The acquisition enhances the defensive characteristics of the Group’s business model in Europe as ARYZTA will now manufacture an enhanced range of bakery products to meet consumer tastes across all channels.

As with other acquisitions completed since the initiation of the ARYZTA Transformation Initiative (“ATI”), this acquisition will also increase the cost and extend the timing of the ATI programme as Klemme is integrated onto the ARYZTA SAP-enabled platform. Further guidance on these ATI programme impacts, including the costs and timing, will be provided with the H1 results announcement on 11 March 2013.

Klemme’s revenue was €229m for the financial period ending 31 December 2012. The deal consideration is €280m, of which €10m is deferred, and will be funded with existing financial resources.