Aryzta Makes Strategic Investments in North America, Latin America and Asia
International speciality bakery group Aryzta is acquiring Tim Horton’s 50% share in Maidstone Bakeries, a Canadian joint venture between Aryzta and Tim Horton, for C$475m (Eur349m). The Maidstone facility was designed, constructed and commissioned in partnership with Tim Hortons, the leading quick service restaurant (QSR) in Canada, in 2002 to 2003.
The purpose built 400, 000 sq ft bakery based in Ontario helped transform the Tim Hortons business as its restaurants were subsequently able to produce freshly baked goods across all parts of the day. Maidstone will continue as a strategic supplier to Tim Horton’s restaurants but Aryzta will be in a position to fast track growth from its manufacturing capability in North America by using Maidstone to serve the dynamic QSR segment.
Owen Killian, chief executive of Aryzta.
Maidstone has the capability to produce a broad range of products including sandwich carriers, handheld snacks, and breakfast products both sweet and savoury to meet the demands of the QSR industry. Maidstone generates an annualised EBITDA of C$67m (Eur49m) at its estimated 55% current capacity utilisation.
With 100% ownership Aryzta will be able to market Maidstone’s spare capacity across all its customer channels with a particular focus on its recently expanded customer base following its acquisition of Fresh Start Bakeries in the US. The increased capacity utilisation will unlock value for Aryzta from its investments in Maidstone which will total Eur409 million after purchase of the Tim Horton stake.
Investment in Brazil and Asia
Separately, Aryzta’s US subsidiary, Fresh Start Bakeries, is in the process of completing an investment in three bakeries in Asia (located in Taiwan, Singapore and Malaysia) and will commence the construction of a new bakery in Brazil. These bakeries will principally service a leading international QSR operator that is expanding in these regions. The investment by Fresh Start Bakeries is expected to total about US$48m (Eur36m).
“Aryzta highly values its relationship with Tim Hortons and welcomes the opportunity to enhance the value of Maidstone Bakeries which complements our recent investments in North America. These investments significantly enhance our bakery capability in North America and in the emerging QSR growth regions of Latin America and Asia,” comments Owen Killian, chief executive of Aryzta.
