Bakkavör Group acquires an Italian pizza manufacturer

Reykjavik, 28 April 2008. Bakkavör Group has acquired an Italian pizza manufacturer, Italpizza, which specialises in the manufacturing of fresh and frozen authentic Italian wood fired pizzas. The consideration price, which remains confidential, was financed by Mizuho Corporate Bank Limited.

Italpizza primarily supplies the retail market, home delivery and food service companies across Europe and North America. The company was established in 1991 and currently employs over 230 people in Modena, in Northern Italy. Its turnover in 2007 was ?40 million.

Italpizza will be consolidated into Bakkavör Group from the acquisition date. The acquisition will have a significant effect on turnover and profitability of the Group’s Continental European operations. The Group expects a sales growth of 15% and EBITDA of at least ?5 million in 2008.

Ágúst Gudmundsson, CEO Bakkavör Group:

“Italpizza is a global player, recognised for its high quality, premium pizzas, and provides an excellent strategic fit with Bakkavör. This is our first major step into the frozen food market, which demonstrates our strategy of taking different approaches in different markets. This acquisition not only provides us with a strong presence in the Italian market, but also complements our current pizza operations, strengthens our competitive advantage and provides a good potential for further growth within the global prepared pizza market, which is one of Bakkavör’s key focus areas.”