Aryzta is rumoured to be looking at €1bn CSM bid
IRISH-led bakery giant Aryzta is believed to be lining up an offer for a huge baking supplies business after it was put up for sale by its parent company.
Dutch giant CSM said on Monday it would look to sell its bakery supplies business, as it seeks to realign its businesses.
The world's largest bakery products firm said it was exiting the business due to high commodity prices and ongoing weakness in the consumer market.
Aryzta could end up paying more than €1bn for the company in what would be yet another transformational deal for the Swiss-based business, which owns several well-known bread and cake brands around the globe including Cuisine de France in Ireland.
Last night an Aryzta spokesman said the company would not comment on market speculation, adding that the company was carrying out its own "transformation programme at this time".
Analysts, however, expect the group to at least kick the tyres on the CSM business, which would dramatically change Aryzta's position in the baking supplies sector.
"An acquisition could add up to about 5pc to Aryzta's earnings in the first year, dependent on the amount of equity raised," said NCB Stockbroker's Adam Greenfield. Aryzta was born out of the merger of the old IAWS group with a Swiss company. Its shares fell 0.66pc to €37.55.