Aryzta divests $171m stake in Picard

Swiss-Irish bakery company Aryzta has agreed to sell the majority of its stake in French frozen food firm Picard to Invest Group Zouari (IGZ).

As per the agreement, the bakery company will divest its 43% stake in Picard for a total consideration of €156m ($171m).

After the transaction, Aryzta will be left with a 4.5% stake in Picard.

The divestment is part of the company’s strategy to dispose its non-core assets, which has so far raised a total of €380m.

Aryzta CEO Kevin Toland said: “The binding offer from IGZ for our interest in Picard represents the earliest practicable opportunity to realise the maximum deliverable value for Aryzta.

“On completion of this transaction, Aryzta will realise some 85% of its asset disposal objective. The steps we have taken in 2019 have established clear foundations on our path towards stability, performance and growth.”

The transaction, which is subject to receipt of regulatory permissions and works council consultation process in France, is expected to conclude in the last quarter of this year.

Aryzta acquired a 49% stake in Picard in August 2015 for around €446.6m.

In August 2018, Aryzta planned to raise €800m from its shareholders in order to reduce its debts and strengthen its overall capital base.

The decision to raise new capital through its stakeholders was taken following a review of the company’s current development strategy and capital infrastructure.

In 2017, Aryzta appointed former Glanbia USA senior executive Kevin Toland as its chief executive.