Grupo Bimbo, S.A.B. de C.V. on March 18 said it has received approval from the Canadian Competition Bureau to acquire Canada Bread Company, Ltd. The closing of the transaction is still subject to approvals from the Department of Justice of the United States and the Canadian Minister of Industry, which are expected to be completed during the second quarter, Bimbo said.
Grupo Bimbo in mid-February agreed to acquire all of the common shares of Canada Bread for C$72 ($65) per share, or approximately C$1,830 million ($1,663 million). Canada Bread is 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.
With the acquisition, Grupo Bimbo would gain a major foothold in the Canadian market through Canada Bread’s portfolio of brands that includes Dempster’s, Pom, Villaggio, Ben’s, Bon Matin and McGavin’s. Canada Bread employs approximately 5,400 associates and operates 25 bakeries in Canada, the United States and the United Kingdom, as well as Canada’s largest direct-store delivery network for fresh bakery that reaches more than 41,000 points of sale.
The acquired business generates annual sales of C$1,439 million ($1,308 million) and EBITDA of C$185 million ($168 million).
