Speciality bakery giant Aryzta has agreed a deal to sell 100% of its bakery business in the US and Canada for $850m (€710m), the company has announced.

On Friday evening, Aryzta said it had agreed a deal with US private equity firm Lindsay Goldberg to sell all of its equity and assets in its bakery businesses in the US and Canada.

Aryzta said it expects the transaction to be completed by the end of this year.

“This agreement represents a significant inflection point for Aryzta and vindication of our simplification strategy to the outright sale option.

“The transaction delivers significant debt reduction and balance sheet strength. It now allows us to focus on delivering further operational improvements and returning to organic growth,” said Aryzta’s interim chief executive Urs Jordi.

Aryzta, which owns the iconic Cuisine de France brand, will report half-year results on Monday.