ZURICH (AFX) - Hiestand Holding AG said the acquisition of German bakery products group Fricopan will weigh on it's EBIT margin, now expected to fall just short of the 10 pct target.
However, the acquisition will result in an increase in Hiestand earnings per share, Hiestand chief executive officer Wolfgang Werle said at a media conference following the announcement of the purchase.
Werle did not comment on the group's revised profit outlook.
While not disclosing the transaction value, Werle said it was 'about equal' to Fricopans 2005 turnover, which was 100 mln eur.
Hiestand will pay for the transaction in cash and will not need an increase in share capital, Werle said.
He also said the group plans to grow both organically and through further acquisitions, so as to achieve its 1 bln sfr sales target by 2010.
'While we now have a strong position in Germany, we are keeping our eyes open. However, currently we are focusing on other European markets,' Werle said.
Previously, he had cited the Iberian Peninsular, Scandinavia and Benelux as interesting markets.
afx.zurich@afxnews.com jmt/gp COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
However, the acquisition will result in an increase in Hiestand earnings per share, Hiestand chief executive officer Wolfgang Werle said at a media conference following the announcement of the purchase.
Werle did not comment on the group's revised profit outlook.
While not disclosing the transaction value, Werle said it was 'about equal' to Fricopans 2005 turnover, which was 100 mln eur.
Hiestand will pay for the transaction in cash and will not need an increase in share capital, Werle said.
He also said the group plans to grow both organically and through further acquisitions, so as to achieve its 1 bln sfr sales target by 2010.
'While we now have a strong position in Germany, we are keeping our eyes open. However, currently we are focusing on other European markets,' Werle said.
Previously, he had cited the Iberian Peninsular, Scandinavia and Benelux as interesting markets.
afx.zurich@afxnews.com jmt/gp COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News