Food group Aryzta, which earlier this week announced details of two major acquisitions, has raised $120 million through a placing of 3,312,290 new shares at 41.50 per share.
This means that the company will now purchase Fresh Start Bakeries by way of $880 million in cash and up to $20 million in ARYZTA shares.
The company said that the $20 million equity consideration will facilitate certain FSB management who are currently FSB shareholders and wish to retain a portion of their equity interest
The shares will be issued out of ARYZTA's authorized share capital under the exclusion of pre-emptive rights and represent 4.08 per cent of its registered share capital prior to this capital increase.
On Tuesday, Aryzta, which was formed following the IAWS takeover of Swiss baker Hiestand, announced that it had bought Fresh Start Bakeries for $900 million and the pizza supplier Great Kitchens for $180 million.
Fresh Start operates 29 specialist production facilities across the US, Canada, Germany, Poland, Sweden, Spain, Brazil, Australia and New Zealand and has three joint ventures located in North America, Chile and Guatemala. It makes products not currently supplied by Aryzta, such as burger buns and ciabatta bread.
Great Kitchens is one of the leading pizza manufacturers in North America serving regional and national grocery chains and retail stores with premium quality pizzas and sandwiches.
Both businesses supply to the quick-service restaurant sector, with 70 per cent of sales in North America.
The combined revenue of the two businesses is €1.03 billion, with associated earnings before tax and write-offs of €133 million.
On Tuesday, Aryzta, which counts Cuisine de France and La Brea bakery among its brands, raised its outlook for the full year, saying it expects underlying earnings per share to rise due to the new acquisitions.
