The transaction is expected to complete by the end of quarter two of Aryzta’s financial year 2022, and is subject to closing conditions customary for this type of transaction, the company said in a statement.
Revolving Credit Facility
The Cuisine de France owner also highlighted that it has entered into an underwritten agreement with three banks for a new €500 million revolving credit facility.
The facility which is expected to be utilised by early October 2021 is underwritten by Credit Suisse, Rabobank and UBS and will replace the current €800m revolving credit facility that matures in September 2022.
Welcoming the signing of the transaction and the completion of the refinancing, chairman and interim CEO of Aryzta, Urs Jordi said, “The successful sale of the Brazil businesses is a further positive step in the delivery of our strategy to rebuild Aryzta's leadership in bakery in Europe and Asia."
'Accelerates Journey To Financial Stability'
Jordi highlighted that the company's disposal program since September has exceeded expectations in all regards and accelerates the group’s journey to financial stability.
"Our focus will now centre on delivery of sustainable organic growth and achieving industry profitability and efficiency levels through our multi-local business strategy," he added.
The company said it was advised on the Brazil transaction by Houlihan Lokey and Alantra, PinheiroNeto and KPMG.
Aryzta will issue its 2021 Annual Report and full year results on 4 October and will hold its AGM on 17 November.