Maple Leaf Foods, a Canada-based meats and baked goods producer, has launched an auction for its bakery business, which includes 90%-owned Canada Bread.
Canada Bread is a manufacturer bread, rolls, bagels and sweet goods, specialty pasta and sauces under the Dempster's, Olafson's, POM, Ben's and Olivieri brands.
With this development, the Canadian firm is targeting bakery giant Grupo Bimbo and several other private equity firms, reported Reuters citing sources familiar with the matter, who asked not to be identified.
Last week, Maple Leaf stated that it is considering plans to sell its bakery business, to increase scale, productivity and profitability in its protein operations. Canada Bread has a market values of C$1.75bn ($1.68bn).
The company has appointed Royal Bank of Canada and Centerview Partners to oversee the auction process, which contacted Bimbo, private equity firms, including KKR and Apollo Global Management, the sources added.
If a deal is struck, Maple Leaf would use the proceeds to pay back its debt, reinvest in the business and return capital to shareholders.
