Grupo Bimbo completes aquisition of Canada Bread from Maple Leaf Foods

Mexican baking company Grupo Bimbo has completed its previously announced acquisition of Maple Leaf Foods’ bakery business, Canada Bread Company.

As part of the transaction, Maple Leaf will receive gross proceeds of approximately $1.66bn, which includes its share of the dividend paid upon closing of the arrangement.

Maple Leaf Foods president and CEO Michael McCain said the sale of Canada Bread enables the company to focus on expanding its leadership in the consumer packaged meats market.

"With the completion of our network strategy this year, we will have low cost assets, leading brands and market shares and the financial flexibility to accelerate profitable growth and return for our shareholders," McCain added.

Announced in February 2014, the acquisition is expected to allow Grupo Bimbo to strengthen its presence in Canada and the UK, and expand its distribution network in the US.

The integration of Canada Bread is scheduled to be reflected in Grupo Bimbo’s consolidated second quarter results starting this month.

Canada Bread is a manufacturer and marketer of value-added flour based products including bread, rolls, bagels, and frozen partially baked or par-baked breads and bagels. It has a workforce of around 5,400 across its 25 bakery sites.

Grupo Bimbo, which manufactures sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, operates 144 plants and has more than 1,600 distribution centres in 19 countries across the Americas, Europe and Asia.