Food group Aryzta has acquired German bakery Klemme AG for €280 million.

According to the Zurich-based company, the acquisition will “substantially transform Aryzta’s European manufacturing footprint and greatly enhance its channel diversification and product capability in the region”.

Klemme, established in 1991, operates seven bakeries with multi-product manufacturing capabilities. It has approximately 1,400 employees and reported revenues of €229 million for 2012.

Aryzta chief executive officer Owen Killian said that the deal would "transform Aryzta's capability in Europe and enhance our strategic positioning with greater access and relevance to large retail and food service customers".

Once the deal is completed, Aryzta will become a major player in the growing German in-store bakery sector and a partner manufacturer for well established European retailers in the specialty bakery sector.

The acquisition will “substantially rebalance” the company’s under-representation within European large retail and will provide new growth opportunities.

It will also increase the cost and extend the timing of Aryzta’s Transformation Initiative (ATI).