Baked goods' producer Aryzta today announced a deal to buy German bakery group Klemme for €280m.
The company said the acquisition will ''substantially transform'' its European manufacturing footprint and greatly enhance its channel diversification and product capability in the region.
Klemme, established in 1991, operates seven bakeries with multiproduct manufacturing capabilities.
It employs about 1,400 people and its food range includes an assortment of bread rolls and ciabattas, croissants, sweet and savoury pastries, doughnuts and pretzels.
Its revenue for 2012 came in at €229m.
Aryzta said the deal consideration is €280m, of which €10m is deferred. It will be funded with its existing financial resources.
“Klemme is a very well invested bakery asset with an enviable reputation for innovation and production excellence,'' commented Aryzta's chief executive Owen Killian.
''This acquisition will transform Aryzta’s capability in Europe and enhance our strategic positioning with greater access and relevance to large retail and food service customers,'' he added.