Bakery company Aryzta has announced that its aims to raise €800m in capital from shareholders, in order to reduce net debts and bolster its capital structure.
The announcement follows a review of the company’s business strategy and capital structure, and the project aims to reposition the company as one of the worldwide leaders in the global frozen bakery market.
According to the company, the new strategy will deliver annual cost savings of approximately €90 million by 2021, and Aryzta will ‘remain committed’ to its €1billion deleveraging plan.
The news comes after a turbulent year for the Swiss-Irish company, which experienced a net loss of €970.8 million in its 2017 full year results, leading to a number of asset sales.
Aryzta aimed to raise €425 million from non-core assets sales by the end of the financial year, and the company has offloaded its La Rousse Food business to Musgrave, its Cloverhill Bakery and Big Texas brands to Hostess, and its stake in UK-based flatbread producer Signature Flatbreads over the course of the year.
Aryzta CEO Kevin Toland said: “A significantly improved capital structure will provide Aryzta with the means to continue to take the necessary steps to reposition 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.”
© FoodBev Media Ltd 2019