Irish baker IAWS to buy stake in Hiestand

DUBLIN (Reuters) - Irish baker IAWS IAW.I will buy a 32 percent stake in Swiss peer Hiestand HIEN.S from private equity group Lion Capital for 12.7 million new shares in IAWS and 30 million euros (24 million pounds) in cash, the companies said on Monday.

IAWS and Hiestand, in which IAWS already has a 32 percent stake, will create a company called ARYZTA AG, which will apply for listings in Switzerland and Ireland and will be led by the chief executive of IAWS.

IAWS will own 83.3 percent of ARYZTA.

"ARYZTA will have geographical reach extending from North America through eastern and western Europe to South East Asia and Australia," IAWS Chief Executive Owen Killian said in a joint statement with Hiestand.

The exchange ratios for the merger would be one ARYZTA share for every two IAWS shares and 36 ARYZTA shares for every one Hiestand share, the statement said.

IAWS IAW.L makes Cuisine de France, Delice de France and Coup de Pates breads and pastries and owns U.S. bakery brands Otis Spunkmeyer and La Brea in the United States.

The merger is expected to be completed in the third quarter of this year, the statement said.

(Reporting by Andras Gergely; editing by Sue Thomas)