Aryzta Acquires Frozen Private Label Bakery
Switzerland-based Aryzta A.G. is set to ramp up its presence in North America by acquiring Canada-based Pineridge Bakery and Chicago-based Cloverhill Bakery for total consideration of approximately $1,013 million. The two companies experienced combined revenues of about $555 million in 2013 with double-digit revenue growth and margins comparable to Aryzta’s food group margins.
“These acquisitions will significantly enlarge Aryzta’s manufacturing footprint in North America,” according to Aryzta. “They extend Aryzta’s customer access in Canada and product portfolio in the U.S. by providing an attractive entry point into the high growth North American snacking market through leveraging these businesses successful customer partnership modes.”
Pineridge Bakery, owned by private equity firm Swander Pace Capital since 2007, is a provider of specialty fresh and frozen private label and branded baked goods. Plus, Pineridge Bakery has added more than 100 new jobs and grown revenue to about $207 million since 2007.
“This transaction is the culmination of a successful 6-plus-year partnership, and it’s a great result for all parties,” says Andrew Richards, managing director at Swander Pace Capital, San Francisco. “Pineridge Bakery will be able to transition their momentum to a new partner with tremendous experience and global reach. Aryzta acquires a leader in its space in North America, and we are able to return a significant result to our investors while leaving a growing company in capable hands. We couldn’t be more thrilled.”
Cloverhill Bakery produces a line of individually wrapped pastries for retail and foodservice, including Danish pastries, cinnamon rolls, crumb cakes, cake donuts, honey buns and muffins.