Snack and Bakery

Bimbo, Flowers bid for Canada Bread

November 25, 2013

Grupo Bimbo, Mexico City, and Flowers Foods, Thomasville, Ga., are said to be among early bidders for Canada Bread Co., the bakery business majority-owned by Toronto-based Canadian food group Maple Leaf Foods. Maple Leaf Foods produces foods ranging from hamburgers to frozen pasta, and has also reportedly drawn bids for its bread unit from SAB and several private-equity firms.

Bloomberg reports that Mexican giant Bimbo and U.S. firm Flowers Foods have made offers for Canada Bread. Maple Leaf said last month that it would look at options for its 90% stake in Canada Bread. Maple Leaf, which owns 90% Canada Bread Co., said in October that it would explore options for the stake, including a possible sale as it divests assets to focus on its meat business. With several suitors evaluating the company, a sale is looking more likely, sources say.

A spokesperson for Maple Leaf Foods says, "We don't comment on speculation in the market." Bloomberg also claimed "several" private-equity firms had bid for Canada Bread, although it did not name the suitors.

Source: www.bloomberg.com