Bimbo Bakeries USA, the American arm of Mexican baking company Grupo Bimbo, has acquired the Beefsteak bread brand from Hostess Brands, the US-based bankrupt producer of bakery products, for $31.9m.
The Beefsteak brand has been acquired as part of the Hostess Brands bankruptcy proceedings.
Beefsteak is one of the highest volume selling rye breads in the US and has established presence in the Midwest and Mid-Atlantic regions, offering BBU a significant opportunity for nation-wide expansion.
In February, Grupo Bimbo won an auction to buy Beefsteak bread brand, beating an $30m opening offer by US-based Flowers Foods.
Bimbo Bakeries, based in Horsham, Pennsylvania, has more than 70 bakeries across the US, and its brands include Arnold, Ball Park, Bimbo, Boboli, Brownberry, Entenmann's, Earthgrains, Sara Lee, and Tia Rosa.
Grupo Bimbo is one of the largest baking companies in the world. It has 154 plants and more than 1,600 distribution centers strategically located in 19 countries throughout the Americas, Europe and Asia.
The company's product lines include sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others.
