TORONTO, May 13, 2014 /CNW/ - Maple Leaf Foods Inc. (MFI: TSX) ("Maple
Leaf" or the "Company") today announced that Grupo Bimbo, S.A.B. de
C.V. of Mexico ("Grupo Bimbo") has received approval under the
Investment Canada Act to proceed with the acquisition of Canada Bread
Company, Limited ("Canada Bread").
The transaction has previously received shareholder approval and
clearance under the Competition Act (Canada) and the Hart-Scott-Rodino Act (USA). The transaction is expected to close on May 23, 2014. Maple Leaf
will realize aggregate cash proceeds of $1.65 billion or $72.00 per
share for its 90% ownership of the outstanding shares of Canada Bread,
plus a stub period dividend of $0.437 per share if the transaction
closes as expected on May 23, 2014.
"We are very pleased that his transaction has satisfied all regulatory
reviews," said Michael H. McCain, President and Chief Executive
Officer. "The sale to Grupo Bimbo will provide an exciting future for
our bakery business and enable Maple Leaf to focus on accelerating
profitable growth in the consumer packaged meats business, supported by
leading brands, market shares and significant financial strength."
About Maple Leaf
Maple Leaf Foods Inc. is a leading food processing company,
headquartered in Toronto, Canada. The Company employs approximately
18,000 people at its operations across Canada and in the United States,
the United Kingdom, and Asia.
About Canada Bread
Canada Bread is a leading manufacturer and marketer of value-added flour
based products, including fresh bread, rolls, bagels, and frozen
partially baked or par-baked breads and bagels. Canada Bread is 90%
owned by Maple Leaf and its common shares are listed on the Toronto
Stock Exchange under the ticker symbol CBY.
About Grupo Bimbo
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 under the ticker symbol BIMBO.
Forward Looking Statements
This document may contain "forward-looking information" within the
meaning of applicable securities law. Such statements include, but are
not limited to, statements with respect to the expected closing date of
the Canada Bread sale. There can be no assurances that this transaction
will be completed on this date or at all. These statements are not
guarantees of future events and involve assumptions and risks and
uncertainties that are difficult to predict. Actual results may differ
materially from those expressed, implied or forecasted in such
forward-looking information. Maple Leaf does not intend to, and Maple
Leaf disclaims any obligation to, update any forward-looking
information, whether as a result of new information, future events or
otherwise, except as required by law.
SOURCE: Maple Leaf Foods Inc.
For further information: