Aryzta plans to raise €800m to ease debts

Swiss-Irish listed food company Aryzta plans 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.

Aryzta CEO Kevin Toland said: “A significantly improved capital structure will provide Aryzta with the means to continue to take the necessary steps to re-position the business and deliver on our strategy.

“Over the medium-term, we expect to generate significant cash flow, which will be applied towards continued net debt reduction and to resource selective growth opportunities.”

Aryzta is said to have conducted the detailed review with assistance from BofA Merrill Lynch, UBS and Rothschild & Co.

The company also stated that its fourth quarter for this year was in line with its expectations and Aryzta anticipates its total EBITDA for 2018 to be between €296m and €304m.

Aryzta has been divesting many of its businesses to various food companies since December 2017 as a result of financial difficulties.

Irish food wholesaler Musgrave Group acquired La Rousse Foods from Aryzta last December, while the Hostess brands acquired a number of Aryzta’s US-based breakfast assets in February, including its Chicago Cloverhill bakery facilities, along with the Big Texas and Cloverhill brands.

In addition, Aryzta’s joint venture (JV) partner, UK-based flatbread producer Signature Flatbreads, agreed to acquire the company’s shareholding in March.