Grupo Bimbo S.A.B. de C.V. formalized three operations that will point its integration into different areas on two continents, expanding the company´s global vision and consolidating its leadership in the world bakery industry. During a press conference, Daniel Servitje Grupo Bimbo´s CEO, noted «all three commercial operations accomplish the Company´s development expectations and give us the opportunity to create value, meanwhile allowing us to enhance our experience we have acquired over 65 years». These three commercial operations were announced as follows:
On September 19th Argentine authorities granted Grupo Bimbo final authorization to complete the acquisition of Compañía de Alimentos Fargo, the main bread producer and distributor in the Republic of Argentina.
On October 10th, Grupo Bimbo signed an agreement with Sara Lee Corporation to acquire its bakery division in Spain and Portugal: Bimbo España, a leader in the packaged bread market on the Iberian Peninsula.
On October 21st, Grupo Bimbo announced that the Department of Justice of the United States granted it authorization to complete the acquisition of the Sara Lee bakery division in the US.
Guillermo Quiroz, Corporate Finance and Administration Director for Grupo Bimbo, informed that once all three operations are formalized, the Company will show important growths in its figures; in example, as of now 154 production plants, 126’200 associates, 50’300 distribution routes and presence in 19 countries on three continents. Thus, final sales for the Group will grow 27 percent, of which 62 percent will come from international market sources.
Grupo Bimbo will continue doing solid and profitable business on the American continent, as Sara Lee and Fargo operations will reinforce its presence in the US and Latin American markets, respectively. Meanwhile the purchase agreement for the Sara Lee bakery division in Spain, will give the Company presence on the Iberian Peninsula to penetrate the European market.
This announcement is made in the midst of a complex climate in global markets, however it sends a positive message and states Grupo Bimbo´s confidence in renewing its vision of leadership in the bakery industry.
Daniel Servitje concluded, «We recognize the challenges posed by the different markets in a global economy, but we are certain of the strategic benefits Grupo Bimbo will derive from being present on three continents and leveraging itself as a global company with millions of consumers who enjoy its vast product portfolio».
About: Grupo Bimbo is the leading company in the global bakery industry. It has more than 109’000 associates. In 2010, it sold 117,16 billion Mexican Pesos. It has 102 plants in 17 countries that produce more than 7’000 products under more than 150 brands in categories such as sliced bread, rolls and toasted bread. Additionally the Mexican bakery group maintains one of the largest distribution networks in the world – more than 43’000 routes.
Source: Bakenet EU