Grupo Bimbo today announced it has agreed to acquire Canada Bread, company with presence in Canada, United Kingdom and United States.
Mexico City, February 12th, 2014.- Grupo Bimbo today announced it 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 CAN$1,830 million, 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 their 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 Group’s global strategy, had led it to 19 countries in 3 continents with more than 100 brands and 10,000 products.
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 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 received the approval from the Administration Councils of Grupo Bimbo, Canada Bread and Maple Leaf, this last one owner of approximately 90% of the common shares of Canada Bread, and it’s 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.
“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 the Chairman of the Board and CEO of Grupo Bimbo.
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