Aryzta disposal of American business on track for balance-sheet repair target – sources11 FEB 2021First round of bids collected in JanuaryBidders are turnaround PE fundsAryzta’s [SWX:ARYN] disposal of its American business is on course to realise the EUR 600m it targeted for balance-sheet repair when the process began, two sources familiar with the situation told this news service.After contending last year with activism from investors Veraison and Cobas, the Swiss-Irish food company rejected a CHF 794m (EUR 734m) takeover bid by Elliott Advisors and said it would instead dispose assets to raise EUR 600m-EUR 800m and repair its balance sheet. It is selling its American unit as a whole, a third source familiar with the situation said. Houlihan Lokey is advising, as reported.It collected indicative bids for the assets late last month, the third source said. No trade suitors are involved, and the only PE funds that bid are experienced with turnaround cases, he said. The bidders include Apollo Global Management [NYSE:APO], Platinum Equity and Cerberus Capital Management, he said, and KPS Capital Partners has been in the mix.Not only does the asset need an owner committed to its improvement, the “extremely rigorous” NDA for the process “put some parties off”, he said. However, Aryzta’s advisors have worked hard to get a few bidders to the table, he said, and one of the first two sources said the vendor is now happy with how the process is moving along.Since 19 December, when Aryzta’s board rejected Elliott’s bid and announced its American disposal, its share price – at CHF 80 today (11 February) – has risen 14%. In the meantime, Veraison, which led the activist group, has reduced its stake to less than 3%, boasting of a return of more than 100% on its investment in the company, which it first disclosed last May.Aryzta, Apollo, Platinum and KPS declined to comment. Cerberus did not respond for comment.by Deane McRobie in London
