Grupo Bimbo Expands European Presence
Mexico-based Grupo Bimbo has agreed 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.
The transaction, valued at C$1.83 billion (Eur1.22 billion), advances Grupo Bimbo’s global growth strategy allowing it to extend the company’s presence in Canada and 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. Until 2013, the Grupo Bimbo’s global strategy, had led it to 19 countries in three continents with more than 100 brands and 10,000 products.
Grupo Bimbo is one of the biggest baking companies in the world and the leader in North and South America. Grupo Bimbo first moved into the European market by acquiring Sara Lee’s fresh bakery business in Spain and Portugal for €115 million in 2011.
90% owned by Maple Leaf Foods, Canada Bread enjoys strong relationships with key retailers in Canada and holds strong market positions in all bread categories. The company employs approximately 5,400 people 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.
The transaction is expected to close during the second quarter of 2014, once regulatory approvals are obtained. To fund the transaction, Grupo Bimbo will utilize cash holdings and financing available under existing long-term committed credit facilities.
