IAWS has announced a merger with Swiss Bakery firm Hiestand, which will see the creation of a new company called Aryzta.

The merger is the result of a five-year relationship between the two business, who hope the new company will realise their goals of being a far reaching global leader in value added baked goods.

Irish company IAWS, currently have operations in North America and Europe and the merger will enable Aryzta’s global reach to extend to South East Asia and Australia.

IAWS already had a 32% shareholding in Hiestand, and has agreed to buy another 32% owned by private equity company Lion Capital, subject to anti-trust clearance, for 12.7 million new shares and 30 million euros in cash.

Owen Killian (CEO of IAWS) will be the chief executive officer of Arzyta. All existing directors of both companies will join the board of Aryzta.

An application will be made for Aryzta’s shares to be admitted to listing on the Official List of the Irish Stock Exchange and the main segement of the SWX Swiss Exchange. Once listed it is expected they will be included in the SPI index in Switzerland and the ISEQ index in Ireland.

The merger is due to be completed in the third quarter of 2008.