Aryzta AG announced it has more than doubled its manufacturing capacity in Malaysia by exercising its option to acquire the bakery, equipment and corresponding land of its co-manufacturer De-Luxe Food Services from Envictus International Holding Ltd. in an asset deal.

The option to acquire the assets was part of the original agreement with Envictus. The current bakery in Bangi will be closed and sold and no relevant restructuring or impairment charges will be triggered.

The transaction will expand Aryzta’s Asian product capability in breads, buns and pastries including new product filling capacity, which will greatly enhance the pace of new product development and innovation. South East Asia is a fast growing market for bakery which is forecast to grow by c 7%-8% CAGR out to 2026.

The addition of this new well invested, Halal certified bakery, will enable Aryzta to meet its growing customer demands in the food service and QSR channels in Malaysia and also expand its exports to other Asian markets. The transaction significantly improves the resilience of Aryzta’s supply chain in the region with the direct ownership of this new modern facility.

Separately on a Group level, Aryzta confirms that pricing discussions to date are progressing well and that Aryzta is on track to reach its communicated objectives.

“This transaction strengthens our strategic expansion and positioning in the growing Asian bakery market,” said Urs Jordi, chairman and interim CEO of Aryzta.