Switzerland-based bakery firm Aryzta has acquired German company Klemme for €280m ($376m) to capitalize on growth in frozen bakery and to move from independent channels into large retailers.
Klemme supplies frozen bakery specialities such as bread rolls, ciabattas and croissants for supermarkets, food service and large bakery chains.
Frozen bakery opportunity
Paul Meade, communications officer for Aryzta, told BakeryandSnacks.com: “Frozen bakery has been growing because it offers the customer the attractive proposition of reduced wastage.”
He said that frozen bakery was very cost effective for consumers as they could choose how much to consume without fear the product would go stale. “The final product is always fresh for the consumer,” he said.
Euromonitor International previously forecast that the frozen bakery market in Europe would grow 4% in 2011 to $1.5 billion in 2011, with Germany Spain and the UK accounting for half of sales.
Move to big retail
Meade said that before the Klemme acquisition, 69% of Aryzta’s sales were generated in independent channels.
“This acquisition helps rebalance that,” he said; with greater exposure in big retailers.
He would not detail which supermarkets Klemme supplied, but said: “If you’re in retail in Germany most would be familiar with the company that we have required.”
New production facilities
He added the acquisition was an attractive fit in terms of geographies. Aryzta was previously present in Germany, but will move up from two production facilities to nine once the deal is concluded.
Klemme has around 1,400 employees and generated €229m ($307m) in revenue for 2012. The acquisition is expected to add about an extra 15% to Aryzta’s full-year earnings.
The company said the acquisition tied in with a program it calls ATI, a €400m ($537m) initiative to move production to “fewer, larger, more efficient multi-product bakeries”.
The deal is subject to clearance from the German Federal Cartel Office.