Aryzta announced the two acquisitions in its half-year 2014 financial results where it posted a net profit rise of 6.5%, up to €129.4m ($179.2m).
Pineridge Bakery specializes in fresh and frozen specialty branded and private label baked goods in Canada and Cloverhill Bakery produces individually wrapped pastries for retail and food service across the US.
Stronger convenience presence and snacks opportunity
Speaking to BakeryandSnacks.com, company CEO Owen Killian said the acquisitions enabled strategic growth.
“These are attractive, recently-invested assets which increase Aryzta's relevance to a broader range of consumer in more channels, especially convenience channel,” he said.
“Bakery and snacking occasions are strongly linked and growing strongly, so the opportunity to enter into snacking with a leading player in this segment will offer strong future growth options,” he added.
The company said the acquisitions would significantly enlarge Aryzta’s footprint in North America and also provide an “attractive entry point into the high growth North American snacking market through leveraging these businesses successful customer partnership models”.
Pineridge and Cloverhill collectively pulled in revenues of €400m ($554m) in calendar year 2013. Pineridge was the cheaper buy-out at $340m.
Aryzta expects a further €70m ($97m) in costs to integrate these businesses into the group’s operations. Both sales are expected to close in the second quarter of 2014.
Investment in shaping business
The acquisitions come amid a two-year transformational period that has seen Aryzta work to position business into a customer-centric model. The company has developed a centralized ERP system to try and simplify global business operations.
Last year, Aryzta forked out €280m ($387m) to buy German frozen bakery specialist Klemme – another move to take Aryzta into new channels.