Industry News

Grupo Bimbo frontrunner to buy Canada Bread

January 27, 2014

Mexico City-based Grupo Bimbo, one of the world’s largest bread makers, has emerged as the leading candidate to acquire Canada Bread Co. Ltd. from majority owner Maple Leaf Foods Inc., Toronto, according to the international news agency Reuters.

Other parties involved in the auction of the approximately $1.64 billion bakery company, including private equity firms KKR & Co. L.P., New York, and Bain Capital LLC, Boston, and Thomasville, Ga.-based Flowers Foods Inc., are reportedly no longer pursuing a deal.

Purchasing Canada Bread, one of two dominant bakery companies in the U.S., would enable Bimbo to build on its U.S. acquisitions and strengthen the Mexican company’s position as the top bread maker in North America. In 2010, Bimbo acquired Sara Lee Corp.’s North American bakery business for $959 million. Last year, the company purchased Hostess Brands Inc.’s Beefsteak bread brand.

Discussions with Bimbo are continuing, and there is no guarantee the two sides will reach a deal, sources told Reuters. Other buyers may still step up, they added.

Maple Leaf, Canada Bread, KKR and Grupo Bimbo declined to comment, while Bain did not respond to a request for comment.

Source: Reuters

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Bakery of the Year: Capistrano's Wholesale Bakery, Phoenix AZ

Here’s a look at Capistrano’s Bakery, our 2014 Bakery of the Year.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 September

September's Snack Food & Wholesale Bakery publication features on defining whole -grain foods, as well as a special feature on the 2014 Bakery of the Year: Capistrano's Wholesale Bakery!

Table Of Contents Subscribe

Favorite Birthday Cake Flavor

September is the most popular birthday month, according to flavor expert McCormick & Co., which celebrates its 125th birthday this year. What’s your favorite birthday cake flavor?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon