Acquisition will be made by Grupo Bimbo's subsidiary Canada Bread
TORONTO, Dec. 18, 2014 /CNW/ - Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today announced that its subsidiary Canada Bread Company, Limited ("Canada Bread") has reached an agreement to acquire the total shares outstanding of Saputo Bakery Inc., a subsidiary of Saputo Inc., for an aggregate cash price of CAD$120 million.
Saputo Bakery is the leading producer of snacks cakes in Canada. This operation will position Canada Bread for further growth in the country, complementing its current product portfolio and its distribution and manufacturing footprint. The acquisition includes well-positioned brands such as Vachon®, Jos Louis®, Ah Caramel®, Passion Flakie® and May West®, among others. The company employs more than 640 associates and operates one production facility in Quebec.
As a result of the due diligence completed by Canada Bread, the business is expected to generate annual sales of more than CAD$130 million. The transaction is conditional upon receipt of customary regulatory approvals.
About Canada Bread
Canada Bread Company, Limited, a wholly-owned subsidiary of Grupo Bimbo since May 2014, is a leading producer and distributor of packaged fresh bread and bakery products with brands such as Dempster's®, Villaggio®, POM®, Bon Matin®, Ben's®, Healthy Way® and McGavins®. In business for more than 100 years, the Company operates 16 bakeries and employs approximately 3,800 Associates across Canada. It distributes its products through a network of more than 1,000 routes operated by franchisees, distributors and some Corporate Associates. For more information, please visit www.canadabread.com.
About Grupo Bimbo
Grupo Bimbo is the largest baking company in the world in terms of volume and sales. Grupo Bimbo has 168 plants and almost 1,600 sales centers strategically located in 22 countries throughout the Americas, Europe and Asia. Its main product lines include fresh and frozen 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 an extensive direct distribution network, with more than 2.4 million points of sale and more than 52,000 routes and more than 130,000 associates. Grupo Bimbo's shares have traded on the Mexican Stock Exchange since 1980 under the ticker symbol BIMBO.
SOURCE: Canada Bread Company, Limited
For further information: Sylvia Sicuso, Canada Bread Company, Limited, 416-626-4316