Green Light For Grupo Bimbo Acquisition of Canada Bread
Grupo Bimbo has received approval from the Canadian Minister of Industry to acquire Canada Bread Company. The C$1.83 billion (Eur1.22 billion) transaction is expected to close on May 23, 2014.
Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has 144 plants and more than 1,600 distribution centers strategically located in 19 countries throughout the Americas, Europe and Asia. Its main product lines include sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 10,000 products and has one of the most extensive direct distribution networks in the world, with more than 52,000 routes and more than 123,000 employees. Grupo Bimbo’s shares have traded on the Mexican Stock Exchange since 1980.
Canada Bread is 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 acquisition advances Grupo Bimbo’s global growth strategy with the entry to the attractive Canadian market through the acquisition of a baking company whose portfolio of premium brands includes Dempster’s®, POM®, Villaggio®, Ben’s®, BON MATIN® and McGAVIN’S®. Canada Bread enjoys strong relationships with key retailers and leading foodservice accounts in Canada and holds strong market positions in all bread categories. Canada Bread employs approximately 5,400 associates and operates 25 bakeries in Canada, the United States, and the UK, as well as Canada’s largest direct store delivery network for fresh bakery that reaches over 41,000 points of sale.
The acquired business generates annual sales of C$1.44 billion and EBITDA of C$1852 million.
