LONDON — Swiss food group Aryzta said Tuesday that it has bought two U.S. bakery companies in separate deals worth a combined $1.08 billion.
The group said the acquisition of Fresh Start Bakeries for $900 million and Great Kitchens for $180 million will double its manufactured volumes and give it a more balanced exposure to its core markets of North America and Europe.
The deal is expected to boost earnings per share by around 20% over 12 months. The group also said its outlook has improved after the rate of decline in revenue moderated in recent quarters. Together with the acquisitions and a potential benefit from exchange rates, the group said it now expects underlying earnings per share in 2010 to exceed those in 2009.
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