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Mexican corporation buys Canada Bread Company
Canada Bread Company Limited has new owners, Mexico’s Grupo Bimbo.
The $1.83 billion deal with current Canada Bread owner Maple Leaf Foods Inc. was announced on Wednesday, Feb. 12.
Canada Bread Company operates 22 bakeries and employs 5,200 people across Canada, including its western head office in Langley located at 6350 203 St. The firm produces a wide range of bakery products including the Venice, McGavin’s and Dempster’s brand names.
Canada Bread Company also operates in the United States and the United Kingdom.
Group Bimbo operates 152 plants with 126,000 employees in Mexico, Latin America, South America, the United States, Europe and Asia.
It produces over 10,000 products including sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others.
The company website describes Group Bimbo as “the largest bakery in the world in terms of brand positioning, production volume and sales.”
A press release issued by Maple Leaf said the sale will allow the Canadian company to focus on its packaged meats business.
The $72 per common share that Canada Bread shareholders will get is 31 per cent above the company’s closing price on the Toronto Stock Exchange of $61.25 on October 18, 2013, the day before Maple Leaf announced it was exploring “strategic alternatives for its bakery business.”
The deal still requires the approval of at least two-thirds of Canada Bread shareholders at a special meeting expected to take place in early April.