Aryzta Completes the Sale of Its Majority in Picard Stake

Aryzta AG announced that it has completed the disposal of the majority of its Picard stake to Invest Group Zouari (IGZ) for a total consideration of EUR156m.

Aryzta retains a 4.5% shareholding in Picard, a French company frozen foods group, to be monetized at a later stage. The proceeds of the transaction will be applied to debt reduction.

The company first announced this movement in October 2019. The price was well below what the market expected, but Aryzta’s shares have fallen by 95% since the company bought a 49% stake in Picard in early 2015. The EUR447m deal was badly received by investors at the time, marking a turning point for then-boss Owen Killian, whose roll-up acquisitions drive had never been questioned before, according to www.irishtimes.com.

It would presage a period of profit warnings and disappointing results as other parts of the business unraveled, leading to a management overhaul, EUR800m share sale to reduce net debt and a round of asset sales.