Aryzta rejects Elliott’s bid and puts Americas units on the market

Aryzta Group has rejected a €734 million takeover offer from US investment firm Elliott and is now selling its North and Latin America units.

Earlier this month, the company made a formal announcement of Elliott’s conditional offer to acquire the troubled Group, as part of its restructuring plan to simplify operations. Despite being in negotiations with the investment firm since October, Aryzta announced on Friday that it has decided to not enter into a transaction agreement with Elliott.

The board’s unanimous decision to reject the proposal was made after careful consideration in line with its fiduciary duties and in the interests of all stakeholders.

Aryzta says its two-part plan to get “back on track” is already in the process of being executed, as it prepares to dispose of selective businesses and improve the performance of remaining units.

The bakery group intends to focus on its Europe and APAC markets and is disposing of its businesses in both North America and Latin America. Engagement with interested parties for these businesses is reportedly progressing well.

The announcement also follows Aryzta’s recent divestment of its North American take and bake pizza unit to private equity firm Brynwood Partners.

The company’s recent moves are in an effort to secure sufficient proceeds to significantly reduce debt levels over the next six to nine months. By the end of 2021, Aryzta expects to secure at least a 25% reduction in central overhead costs as it moves to a multi-local, lean and more agile business model.