FDBusiness.com

Aryzta, the Zurich-based global speciality bakery group, is strengthening its position in Europe with the acquisition of Klemme, a leading bakery in Germany, for Eur280 million. The strategic acquisition will substantially transform Aryzta’s European manufacturing footprint and greatly enhance its channel diversification and product capability in the region.

Established in 1991, Klemme operates seven highly efficient bakeries with multi-product 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. Klemme’s revenue was Eur229 million for the year ending 31 December 2012.

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.

The transaction is subject to clearance from the German Federal Cartel Office and as such final completion date is unknown.

Owen Killian, chief executive of Aryzta, comments: “Klemme is a very well invested bakery asset with an enviable reputation for innovation and production excellence. This acquisition will transform Aryzta’s capability in Europe and enhance our strategic positioning with greater access and relevance to large retail and food service customers.”