Bimbo said completion of the transaction came after the company received regulatory clearance allowing Bimbo to exercise a purchase option it held with Madera L.L.C., which held a 70% ownership stake in Fargo.
Fargo operates five baking plants with 1,500 employees and has sales of about $150 million annually. Fargo’s products are sold under the Fargo, Lactal and All Natural brands through wholesale, retail and institutional channels.
“This acquisition strengthens Grupo Bimbo’s regional profile and growth strategy in Latin America,” the company said. “The combined businesses will benefit from Grupo Bimbo’s global expertise in the baking business and Fargo’s robust profile in the local market.“
Bimbo said the integration of Fargo operations will be reflected in Bimbo consolidated financial results beginning in October 2011.