Aryzta to sell 43% stake in French frozen food producer Picard
Swiss food company Aryzta has been given a binding offer from Tunisian investment group Invest Group Zouari (IGZ) to sell the majority of its stake in Picard, a French frozen food producer.
Under the offer, Aryzta has been asked to sell a 43% stake in Picard for €156 million. Combined with prior dividend income of €91m of the French frozen food company, the consideration represents a total of €247 million.
Aryzta’s board concluded that the terms of the offer from Invest Group Zouari are fair and reasonable and in the best interest of the company as a whole. The Swiss food company said that it has been given independent legal and financial advice to back the conclusion on the offer.
The Swiss food company will retain a stake of 4.5%, which is expected to be monetized at some point in the future.
Kevin Toland – Aryzta CEO 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.”
Aryzta said that the net proceeds from its non-core asset disposal program are now €380m, which includes this transaction.
The deal, which will be subject to receipt of mandatory regulatory approvals and a works council consultation process in France, is likely to be wrapped up in Q4 2019.
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