Mexican baking company Grupo Bimbo's subsidiary Canada Bread has agreed to acquire Saputo Bakery, a subsidiary of Canadian dairy company Saputo, in a C$120m ($103.27m) deal.
This acquisition of Canada's leading producer of snacks cakes will help Canada Bread to enhance its market position in the country along with its current product portfolio as well as its distribution and manufacturing footprint.
This agreement also results in the purchase of brands such as Vachon, Jos Louis, Ah Caramel, Passion Flakie and May West, among others.
Saputo Bakery currently employs more than 640 people and also operates one production facility in Quebec, Canada.
Canada Bread supply chain senior vice-president Jean Luc Breton was quoted by CBC News as saying: "We are proud to acquire Vachon, the leading snack cake brand in Canada, and add their great brands to our other market leaders like Dempster's and POM.
"It clearly demonstrates our commitment to win in the market every day by delighting consumers."
With this development, the company is expected to have an annual sale of more than C$130m ($111.87m), Canada Bread said.
