Grupo Bimbo has completed the acquisition of Canada Bread Company, the bakery products division of Maple Leaf Foods, in a $1.66bn deal.
According to Grupo Bimbo, the integration of Canada Bread will be reflected in its consolidated second quarter results beginning 23 May 2014.
Canada Bread brand portfolio includes Dempster's, Pom, Villaggio, Ben's, Bon Matin and McGavin's. The company has nearly 5,400 associates and operates about 25 bakeries across Canada, the US, and the UK.
Speaking about the deal, Maple leaf Foods president and CEO Michael McCain said that with the sale of Canada Bread, the company's focus is dedicated to broadening 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.
Grupo Bimbo recently received approval from Investment Canada Act to continue with acquisition. Earlier in May 2014, the transaction also received shareholder approval and clearance under the Competition Act (Canada) and the Hart-Scott-Rodino Act (USA).
