D.O.J. clears Bimbo/Canada Bread transaction
March 24, 2014
by Eric Schroeder
MEXICO CITY — Grupo Bimbo, S.A.B. de C.V. said it has received approval from the U.S. Department of Justice to acquire Canada Bread Company, Ltd. The transaction was approved by the Canadian Competition Bureau on March 18, but still awaits the approval from the Canadian Minister of Industry for the closing of the acquisition, which is expected during the second quarter.
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).