Canada Bread sold to Mexican firm for $1.83 billion
Bakery division of Maple Leaf Foods sold to Grupo Bimbo of Mexico.
TORONTO — Mexican company Grupo Bimbo is buying Canada Bread Co., Ltd. in a deal valued at $1.83 billion.
Canada Bread’s majority shareholder, Maple Leaf Foods has agreed to the offer from the Mexico City-headquartered Grupo Bimbo, which is offering $72 per cash for all shares of the Toronto-based company.
In 2013, Canada Bread and Maple Leaf said they were looking to sell to the right buyer at the right price, with Grupo Bimbo thought to have always been a contender for Canada’s largest bakery business.
Canada Bread’s brands include: Villagio, Dempster’s and Sunshine, as well as a line of frozen baked goods.
According to Maple Leaf Foods chief executive officer Michael McCain, the company will now focus on its packaged meats sector.
The deal affects 22 Canadian bakeries, but Canada Bread employs some 5,400 people in Canada, the U.S. and the U.K.—though production is expected to continue at these facilities.
Despite sales of about $1.6 billion in 2013, Canada Bread notes that in the past three years its sales of frozen foods have slipped by nearly five percent and fresh products by nearly two percent.
Grupo Bimbo has 144 plants in 19 countries, including Mexico, the U.S., Central and South America, Europe and Asia.