Grupo Bimbo spends US$1.665 billion on Canada Bread
Grupo Bimbo is to acquire Canada Bread, one of the leading manufacturers and marketers of bakery products, including sliced bread, buns, bagels, English muffins and tortillas in Canada, frozen bread in North America and specialty bakery goods in the United Kingdom.
Grupo Bimbo said that the transaction, valued at CAN$1,830 million (US$1,665 million), advances its global growth strategy, allowing it to extend the company’s presence in Canada and the United Kingdom, as well as to expand its distribution networks in the United States, through premium brands such as Dempster’s, POM, Villaggio, Ben’s, BON MATIN and McGAVIN’S. As of 2013, the Group’s global strategy had led it to 19 countries in three continents with more than 100 brands and 10,000 products.
Canada Bread is said to enjoy strong relationships with key retailers in Canada and to hold strong market positions in all bread categories. The company employs approximately 5,400 associates and operates 25 bakeries, as well as Canada’s largest direct store delivery network for fresh bakery that reaches over 41,000 points of sale.
“We are very pleased to announce the acquisition of Canada Bread for Grupo Bimbo, given it’s a company with a strong commercial presence, recognized by customers and consumers for its product’s high quality in the different bread categories; values and commitment, ranging from the hand of our group” , said Daniel Servitje, chairman of the board and CEO of Grupo Bimbo.
The transaction is expected to close during the second quarter of 2014, once regulatory approvals are obtained.
“We are pleased that, in coincidence with the 20th anniversary of the entry into force of NAFTA, Grupo Bimbo is announcing this important investment that involves all three members of the commercial treaty. This clearly reflects the strength of our commercial relationship and the integration different industries have reached across North America”, concluded Servitje.
Source: Ingredients Network