In a strategic move which clearly underscores the potential for a substantial transformation of the European manufacturing business of Aryzta AG, the Irish-Swiss baked food group has recently announced its decision to acquire German bakery company Klemme AG in a €280 million ($376 million) deal.

The acquisition deal – which will include a 10 million-euro deferred payment and will be financed with Aryzta’s existing resources – marks the expansion of Zurich-based Aryzta in Germany.

In a statement pertaining to the Klemme takeover deal, Aryzta – the Swiss owner of bakery brands such as Delice de France and Otis Spunkmeyer – said that the move was consistent with the company’s policy of aiming at acquisitions “which add new geographies, customers, channels, and product capability.”

The acquisition of Klemme – which generated €229 million in annual revenue last year - is Aryzta’s biggest takeover since 2010. The takeover will make the group one of the foremost players in the growing in-store bakery sector in Germany.

About the Klemme acquisition, the Aryzta management said in a statement: “The acquisition enhances the defensive characteristics of the group’s business model in Europe as Aryzta will now manufacture an enhanced range of bakery products to meet consumer tastes across all channels.”