Canada Bread Co. Ltd., Etobicoke, Ontario, a subsidiary of Grupo Bimbo S.A.B. de C.V., Mexico City, has reached an agreement to acquire the total shares outstanding of Saputo Bakery Inc., a subsidiary of Saputo Inc., Montreal, for an aggregate cash price of CA$120 million (approximately $103.5 million).

Saputo Bakery is the leading producer of snack cakes in Canada. This operation will position Canada Bread for further growth in the country, complementing its current product portfolio, distribution network and manufacturing facilities. The acquisition includes well-positioned brands such as Vachon, Jos Louis, Ah Caramel, Passion Flakie and May West. The company employs more than 640 associates and operates one production facility in Quebec.

In accordance with the due diligence completed by Grupo Bimbo, this new operation is expected to generate annual sales of more than CA$130 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of CA$15.5 million.

The transaction is conditional upon receipt of customary regulatory approvals and is expected to close during the first quarter of 2015.