Aryzta, one of the prominent leaders in frozen bakery market, is set to sell its shares in Signature Flatbreads to its joint venture partner. The bakery group declared that it will offload its focus from the non-core business and concentrate on the frozen bakery business to business operations. The proceeds from the sale of the 50% shares Aryzta held in Signature Flatbreads will be used to pay off debts, apparently.
For the uninitiated, the Aryzta-Signature International Foods joint venture was spun off in 2015. Recently, Aryzta’s half-yearly results depicted a 6.3% decline in revenue and a 53.5% decline in profit, owing to which Aryzta will be selling the stakes to its partner for approximately EUR 34 million. The transaction is expected to be completed in the Q3 FY18.
The deal comes along the heels of Aryzta’s disposal of Cloverhill Cicero and Chicago facilities in the US and the sale of the La Rousse Foods to Musgrave, a Dublin based business retailer. Aryzta is also looking at a possible sale of its 49% stake in Picard, the French frozen food retailer. The move is waiting to be ratified by joint venture partners and once sanctioned, is likely to have a marginal impact on frozen bakery industry.
Kevin Toland, CEO, Aryzta, reportedly said that Aryzta is on track to deliver the full year target of generating disposal proceeds that should amount to at least EUR 450 million of which EUR 140 million has been realized till date.
William and Charles Eid, the chief shareholders of Signature International Foods in a statement declared that Aryzta helped them transition from a medium sized business to a bigger organization with hundreds of employees. They added that Signature International Foods will become a family business once more and will retain the discipline required to promote its growth. It will continue to build on the passion and innovation that helped the business to be recognized in an international arena in frozen bakery market, they state.