Following the divestment of its bread business, Maple Leaf Foods CEO says the company will focus on its packaged meats business.
Maple Leaf Foods Inc. has announced that Grupo Bimbo, S.A.B. de C.V. of Mexico has agreed to acquire all of the issued and outstanding common shares of Canada Bread Company, Limited for aggregate cash proceeds of $1.83 billion or $72.00 per share pursuant to an arrangement agreement entered into between Canada Bread and Grupo Bimbo. Maple Leaf currently holds approximately 90 per cent of the outstanding shares of Canada Bread and has agreed to vote all of such shares in favour of the transaction.
Michael H. McCain, President and CEO of Maple Leaf Foods said: "This transaction maximises the value of our investment in Canada Bread and focuses Maple Leaf on building its leadership in the consumer packaged meats business.
"Grupo Bimbo is an excellent company with strong values and a global leadership position, with little overlap in our geographic markets. This makes for a highly complementary fit with our bakery operations and is expected to provide exciting opportunities for Canada Bread employees, customers and other business partners.
"Upon completion of our prepared meats strategy at the end of 2014, Maple Leaf intends to capitalise on its state-of-the-art network, market-leading brands and a strong balance sheet to build on our position as Canada's leading consumer packaged meats company, both within and beyond our borders."
