Aryzta subsidiary IAWS Group has reached an agreement with Tim Hortons, its 50/50 partner in the Maidstone Bakeries joint venture, to acquire its 50% share for consideration of C$475m (£290m).
Following the investment, Aryzta aims to fast-track growth from its manufacturing capability in North America by “leveraging Maidstone’s experienced labour force and intellectual property [...] to serve the dynamic QSR [quick-service restaurant] segment”.
The Maidstone facility, in Ontario, Canada was designed, constructed and commissioned in partnership with Tim Hortons, the leading QSR in Canada, in 2002-2003.
According to Aryzta, it helped transform Tim Hortons’ business, as its restaurants were able to offer fresh baked goods to customers.
Currently Maidstone exclusively services the Tim Hortons network under a contractual arrangement, which extends to 2016, with the option to extend by mutual agreement.
• In other news, Aryzta’s US subsidiary, Fresh Start Bakeries, is currently completing the acquisition of three bakeries in Asia – located in Taiwan, Singapore and Malaysia – and is to commence the construction of a new bakery in Brazil.
“Aryzta highly values its relationship with Tim Hortons and welcomes the opportunity to enhance the value of Maidstone Bakeries, which complements our recent investments in North America,” commented Owen Killian, chief executive officer of Aryzta.
“These investments significantly enhance our bakery capability in North America and in the emerging QSR growth regions of Latin America and Asia.”