Canada Bread Co. Ltd., Toronto, announced today that it is being acquired by Grupo Bimbo, S.A.B. de C.V., Mexico City, for $1.83 billion, pursuant to an arrangement agreement between the two companies.
“This is an excellent outcome for our bakery businesses and shareholders,” says Richard Lan, president and CEO. "Becoming part of Grupo Bimbo, the world's leading bakery company and benefiting from its focus, expertise and resources, will create new opportunities for our people, customers and business partners.”
Under the terms of the agreement, Canada Bread can continuing paying quarterly dividends of up to 75 cents per share until the closing of the transaction. Toronto-based Maple Leaf Foods Inc., which owns approximately 90% of the outstanding common shares of Canada Bread, has entered into a voting support agreement with Grupo Bimbo, whereby Maple Leaf has agreed to vote all of its common shares of Canada Bread in favor of the arrangement.
The transaction follows an extensive process undertaken by Maple Leaf, in cooperation with a special committee of independent directors of Canada Bread, to maximize the value of Canada Bread. The arrangement, which has been approved by the boards of directors of Canada Bread and Grupo Bimbo, will require the approval of at least two-thirds of the votes cast by the shareholders of Canada Bread at a meeting expected to take place in early April 2014. The transaction is also subject to court approval, regulatory approvals and other customary closing conditions.
Canada Bread is a leading manufacturer and marketer of value-added, flour-based products, including fresh bread, rolls, bagels and frozen partially baked or par-baked breads and bagels.
Grupo Bimbo, one of the largest baking companies in the world, produces sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks, confectionery products and more.
Source: Canada Bread Co. Ltd.