Grupo Bimbo acquiring leading Ecuadoran baking company
July 15, 2014
by Josh Sosland
MEXICO CITY — Grupo Bimbo S.A.B. de C.V. on July 15 announced it has reached an agreement to acquire Supan, the largest baking company in Ecuador.
Terms of the transaction were not disclosed, but Bimbo said Supan has annual sales of about $57 million and is expected to generate adjusted EBITDA of $6 million. Supan has 900 employees and operates plants in Guayaquil and Quito. The company’s brands of bread, buns and sweet goods include Supan, Bimbo, Grile, Braun, Dulzones, Rey-pan and Panso. According to Supan, the company bakes 74 different products, distributed in 24 provinces of Ecuador at 35,000 different outlets.
“The transaction represents Grupo Bimbo’s debut into the Ecuadorian market, in line with the company’s strategy to further strengthen its footprint in the Americas,” Grupo Bimbo said.
Ecuador will be included in Bimbo’s Latin America reporting region, which at 21,822 million pesos ($1,685 million) accounted for 12% of the company’s net sales in 2013. EBITDA in the region last year was about 103 million pesos ($8 million). The acquisition will bring to 15 the number of countries in which Bimbo operates in Central and South America. Others include Argentina, Brazil, Colombia, Costa Rica, Chile, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Panama, Peru, Uruguay and Venezuela.