Swiss bakery giant Aryzta is to buy German peer Klemme in a bid to expand its business with the country's retailers.
Aryzta said the EUR280m (US$376m) deal, which remains subject to Germany's competition authorities, would make it a "leading player" in the country's "growing in-store bakery sector".
However, Aryzta also sees benefits across Europe. The company said it was "under-represented" with large retailers in the region.
The company said acquiring Klemme would make it a "leading partner manufacturer" for "well-established" European retailers in the specialist bakery category.
Klemme, which has seven bakeries that make products including ciabattas, croissants and pretzels, had sales of EUR229m in 2012, Arytza said. It did not provide a profit figure.
