Grupo Bimbo, one of the largest Mexican-owned baking company, with operations in the Americas, Asia and Europe has agreed to acquire Canada Bread, a manufacturer and marketer 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 $1.66 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.
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, recognised by customers and consumers for its product’s high quality in the different bread categories,” 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—owner of approximately 90% of the common shares of Canada Bread. The acquisition is expected to close during the second quarter of 2014, once regulatory approvals are obtained.