Aryzta plans to shut two German bakeries and strengthen its French distribution network by acquiring frozen-food distributor Frigegro.
The Swiss bakery manufacturer said the Gerolzhofen and Nordhausen closures would “create a more competitive footprint aligning production with current and expected market supply/demand”.
Manufacturing in Germany will be concentrated at Eisleben, Aryzta’s largest and third German bakery site. The facility comprises five plants and 23 production lines producing rolls, baguettes, pretzels, doughnuts and croissants.
The restructuring will also see the company “simplify” its German portfolio by “exiting lower-volume and structurally less profitable products and lines”.
The move follows a review announced in August, after the group reported a challenging first half.
Aryzta previously described Germany as its “most challenged market”, citing consumer price sensitivity, weak spending and surplus bakery production capacity.
Nordhausen currently makes rolls, ciabatta, baguettes and Berliner pastries, while the Gerolzhofen bakery produces croissants, sweet baked goods, savoury snacks and cookies.
These German facilities supply customers across retail, foodservice and the quick-service restaurant sector.
Aryzta chairman and interim CEO Urs Jordi said: “Consolidating production at Eisleben and simplifying our product portfolio will make our German operations more efficient and bring profitability closer to the levels achieved in our other European bakery businesses.”
The publicly traded bakery group employs approximately 2,000 people in Germany.
Although Aryzta has not disclosed how many roles could be affected, it said the process would be handled “responsibly and in accordance with all its obligations”.
Implementation is expected to take place “mainly in 2026 and 2027” and could lower German revenue by approximately €35m ($39.2m) to €40m. The company expects increased sales in “other markets and channels” to partly compensate for the reduction.
In France, Aryzta’s Coup de Pates business has acquired the entire share capital of Frigegro, a frozen-products distributor serving the Limoges region.
According to Aryzta, Frigegro has operated as an independent distributor of Aryzta, Coup de Pates and La Carte d’Hubert products in the region since 1994.
Data from the French government’s business registry indicates that Frigegro was established in 1989 and employed between 20 and 49 people in 2024.
The transaction marks Aryzta’s second bolt-on acquisition in France this year. In June, Coup de Pates completed the purchase of Société Européenne des Beurres.
Combined, the two French acquisitions are expected to contribute approximately €35m to €40m in annualised revenue.
Jordi added: “acquisition in France demonstrates our disciplined approach to capital allocation, by investing selectively in attractive products, geographies and channels. This is consistent with our focus on premium bakery, foodservice and QSR growth, particularly outside Germany”.
During the first half of the year, Aryzta’s organic group revenue declined 2.7% to €1.06bn.
EBITDA fell 7% to €139.9m, reducing the margin by 70 basis points to 13.2%. Net profit decreased 3.9% to €47.2m, while diluted earnings per share declined 1.1% to €1.82.
Aryzta said the German restructuring would “materially improve” its domestic margins and add approximately 60-80 basis points to the group EBITDA margin.
For the 2026 financial year, the company is targeting EBITDA of around €300m and free cash flow of €100m, excluding one-time costs.
