Bimbo Bakeries Acquires Cicero Facility from Aryzta

In addition to the sale of the Cicero facility, Aryzta said it has agreed to sell its Cloverhill facility in Chicago to Hostess Brands, Inc. Cloverhill makes Danish pastries, cinnamon rolls, crumb cakes, donuts and honey buns, primarily sold through vending machines.

“These disposals are consistent with Aryzta’s commitment to address non-core or non-strategic businesses and reflect a focus on maximizing free cash flow,” according to a press release.

Baked goods firm Aryzta has seen its revenue fall by 5.5% year-on-year to EUR909.7m in the three months to October 31, according to the financial announcement made by the company.

Group organic revenue declined by 2.6% in the period. Currency had a 2.9% negative impact on revenue.

In Europe, despite the expected reduction from Swiss in-sourcing, the company, whose brands include Cuisine de France, experienced organic growth of 0.6%, which was then offset by negative currency headwinds of 0.9%.

In North America, Aryzta saw its organic revenue decline by 7% in the three-month period, driven entirely by its Cloverhill business, which Aryzta acquired in 2014.