Aryzta announced this morning it is to sell the majority of its Picard stake for a total consideration of €156m. It will sell a 43% stake to Invest Group Zouari for €156m.

In 2015, analysts were critical when Aryzta bought a 49% stake in the frozen food manufacturer for €447m. It will now retain 4.5% in Picard to be monetised at a later stage.

Aryzta has received €91m in prior dividends which, brings the total consideration to €247m. This represents an exit transaction of 9.2 times earnings.

Opportunity

Aryzta CEO Kevin Toland commented: "The binding offer from IGZ for our interest in Picard represents the earliest practicable opportunity to realise the maximum deliverable value for Aryzta.”

He added that the steps we have taken in 2019 have established clear foundations on our path towards stability, performance and growth. The transaction is expected to close before the end of the year.

Shares in Swiss-based Aryzta are down 70% in the last year and are now trading at €0.65.